According to sources familiar with the matter at hand, the U.S. government is weighing options which include stopping General Electric Co from continuing to supply engines for China’s passenger jet.
The development will cast a shadow of uncertainty over China’s efforts to enter the civil aviation market.
The potential restriction on the sale of plane engines is also likely to include restrictions to other components for passenger aircraft, including flight control systems made by Honeywell International Inc.
The issue is expected to come up at an interagency meeting on Thursday on ways to strictly limit exports of U.S. technology to China, said sources.
The U.S. Commerce Department, which issues licenses for such exports, declined to comment
GE’s spokeswoman declined to comment.
The U.S. Departments of Defense, State, Energy and Treasury did not respond to requests for comments.
Honeywell’s spokeswoman declined to comment.
According to an aerospace trade group, the organization would most like weigh in on any policy shifts.
“If there are any changes, we would hope they would engage with us, as they’ve done before,” said Remy Nathan, vice president for international affairs at the Aerospace Industries Association.
At the heart of the debate on this matter is whether such shipments would fuel the rise of a serious competition for Boeing Co and/or it will further boost China’s military capabilities.
According to a source familiar with the matter, China could retaliate the U.S. move by ordering more planes from Airbus SE, rather than from Boeing, which incidentally relies on China for a fourth of its deliveries.