[Text/Observer Network Wang Yi] Just over two weeks ago, U.S. President Donald Trump had reached a series of important consensuses with China in the economic and trade field, but he turned his back on it.

The New York Times reported on May 28, citing anonymous sources, that the U.S. Commerce Department has suspended some licenses allowing American companies to sell products and technologies to Commercial Aircraft Corporation of China (COMAC), in an attempt to weaken the ability of Chinese companies to develop the C919 passenger aircraft.

The newspaper pointed out that this move by the Trump administration was a response to China's restrictions on the export of key minerals.

In retaliation against the U.S.-initiated trade war, China announced in April this year that it would impose export controls on seven categories of heavy rare earth-related items such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium, which are crucial for global automobile manufacturers, aerospace manufacturers, semiconductor companies, and military equipment manufacturers. After the two sides reached an agreement in Geneva, Switzerland on economic and trade issues in early May, foreign media noted that although China agreed to suspend "non-tariff countermeasures" taken after April 2, actual control over strategic resources such as critical minerals and rare earths continued to strengthen.

A source told The New York Times that China has recently resumed shipments of some rare earth magnets, but the quantity is limited. American businesses are still concerned about whether they can continue to obtain these critical resources from China.

The U.S. Department of Commerce and General Electric Company, an American aircraft engine manufacturer, have not yet responded to this report.

C919 aircraft Visual China

The New York Times said that the Trump administration's efforts to exert influence on important economic sectors in order to gain an advantage in the trade conflict are pushing the world's two largest economies toward a supply chain war.

Currently, American aircraft manufacturer Boeing and European aircraft manufacturer Airbus dominate the global commercial airliner market, producing all wide-body aircraft and supplying more than 90% of single-aisle aircraft worldwide in the past five years.

Established in 2008, COMAC is rapidly catching up. Its C919 passenger aircraft is China's domestically produced large aircraft, with the first delivery taking place on December 9, 2022, and its commercial debut on May 28, 2023. Subsequently, the C919 began regular commercial operations, covering cities such as Beijing, Shanghai, Guangzhou, Hangzhou, etc., in China.

The New York Times believes that the C919 is challenging Boeing 737 and Airbus A320 series aircraft, but many parts of the C919, including engines, still rely on imports from the United States and Europe. The latest restrictions imposed by the Trump administration may affect it.

"The fate of COMAC may depend on Trump's future tariff plans," analysts at Business Insider pointed out in April that although the C919 depends on foreign suppliers, due to the massive backlog of orders faced by the two major aircraft manufacturers, airlines unable to purchase aircraft may seek to buy Chinese planes.

Michael O'Leary, CEO of European aviation giant Ryanair, has expressed openness to ordering the C919. He said in late March that if Chinese aircraft are sufficiently affordable, 10% to 20% cheaper, "we will place an order."

"I don't care who makes them, whether Boeing, Airbus or COMAC. As long as the price is right, we'll buy," O'Leary said.

Analysts at Barclays Bank in the UK previously predicted that Trump's tariff policies, delays in Boeing deliveries, and other factors "are likely to become catalysts for the internationalization of China's C919 aircraft."

It was reported that airlines in Kazakhstan, Vietnam, Indonesia, and other countries are already considering purchasing the C919. By the end of last year, COMAC had delivered 16 C919 aircraft to buyers and received thousands of orders. The company is stepping up efforts to expand production capacity, planning to increase annual production of the C919 to 200 by 2029. At the same time, this Chinese aircraft manufacturer is also expanding its product line, accelerating the development of C929 and C939 aircraft.

Guillaume Faury, CEO of Airbus, said that the rise of COMAC could potentially lead the industry from a duopoly to a potential trilateral monopoly.

Regarding the U.S. government's repeated attempts to require domestic and foreign companies not to sell their products to China, a spokesperson for the Chinese Foreign Ministry has repeatedly stated that such actions by the U.S. are entirely aimed at maintaining its hegemonic interests, seriously violating market economy principles and international trade rules, disrupting the stability of the global industrial and supply chains, and are not in the interest of any party. It not only damages the interests of Chinese enterprises but also harms the interests of related enterprises of other parties.

The spokesperson stated, "We firmly oppose such practices, and we hope that relevant governments and enterprises in various countries can work together with us to jointly uphold the multilateral trading system and maintain the stability of the global industrial and supply chains."

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Original source: https://www.toutiao.com/article/7509698862098022952/

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