Trump Uses Aviation Exports to Pressure China on Rare Earths

The Trump administration is leveraging China's reliance on U.S. aviation suppliers to secure concessions on rare earth minerals used in U.S. chipmaking, aerospace, and vehicle manufacturing. The U.S. Department of Commerce has slowed export licensing for airplane parts and limited shipments to the state-owned planemaker COMAC to prevent the stockpiling of critical components.

As part of this strategy, the U.S. has withheld spare parts guarantees for 200 Boeing jets that China agreed to purchase in the spring of 2026. These actions follow a September meeting between officials and a visit by President Xi Jinping to Washington, which resulted in a trade truce extension until January 10, 2027.

While the aerospace sector has avoided direct tariffs, it continues to face shortages of thermal coating sprays due to Chinese restrictions on rare earth materials. The U.S. is using these aviation bottlenecks as a primary tool to pressure Beijing into easing those controls.