The Trump administration is taking steps to tighten US exports of aviation parts to China, seeking to turn Beijing's dependence on American aerospace suppliers into leverage in broader trade negotiations, according to people familiar with the matter cited by Reuters.

The US Commerce Department has slowed the approval of export licences for airplane parts destined for China in recent weeks, Reuters reported. Officials are also weighing new rules that could make it easier to restrict shipments of landing gear and other aircraft components.

A draft version of the proposed regulation included a licensing requirement for aviation hydraulic fluid supplied by US companies such as ExxonMobil, one source told Reuters. The Commerce Department is also limiting the number of parts licensed for shipment to China's state-owned aircraft maker COMAC, in an effort to prevent the company from building up large inventories of US-made components.

The measures come as Washington seeks greater access to China's supply of rare earth minerals, which are critical to industries including automobiles, semiconductors and aerospace. Boeing said it remains committed to supporting Chinese airlines while complying with US export requirements.

Source: Reuters