US Resumes Jet Engine Exports to China’s COMAC Amid Trade Shift

U.S. Resumes Jet Engine Shipments to China’s COMAC: A Strategic Trade Shift

The United States’ decision to reinstate export licenses for GE Aerospace to supply jet engines to China’s Commercial Aircraft Corporation (COMAC) marks a significant shift in the ongoing trade dynamics between the two global superpowers. This move, which allows the resumption of LEAP-1C and CF34 engine shipments, arrives amid a broader de-escalation in U.S.-China trade tensions. It also reflects the intricate interdependence of global aerospace supply chains, where geopolitical strategies intersect with commercial imperatives.

For COMAC, the Chinese state-owned aircraft manufacturer, the resumption of engine shipments is critical to maintaining production timelines for its flagship aircraft, the C919 and the rebranded C909 regional jet. These aircraft are central to China’s long-term ambition to challenge the Boeing–Airbus duopoly and achieve technological sovereignty in the aerospace sector. However, the reliance on Western components, especially Propulsion systems, reveals the fragile underpinnings of this ambition.

This article explores the broader implications of this export license reinstatement, the history and strategic goals of COMAC, and the geopolitical and economic factors shaping the future of aerospace trade between the U.S. and China.

COMAC’s Development and Strategic Dependencies

The Rise of COMAC and the C919 Program

Founded in 2008, COMAC was established to spearhead China’s ambitions in the global aerospace sector. Its most prominent project, the C919 single-aisle jet, was designed to compete directly with the Boeing 737 and Airbus A320 families. The aircraft first flew in 2017 and entered commercial service in 2023 with China Eastern Airlines. Despite being manufactured in China, over 80% of the C919’s components are sourced from Western suppliers, including engines, Avionics, and flight control systems.

At the heart of the C919 is the LEAP-1C engine, developed by CFM International, a joint venture between GE Aerospace and France’s Safran. This engine not only provides thrust but also includes a fully integrated propulsion system, enhancing efficiency and reducing maintenance complexity. The CF34-10A engine, also from GE, powers COMAC’s regional jet, the C909, formerly known as the ARJ21.

COMAC’s dependency on these Western technologies has been both a strength and a vulnerability. While it allows the company to produce aircraft that meet international performance standards, it also exposes it to Supply Chain disruptions driven by geopolitical tensions.

“Despite being marketed as a Chinese aircraft, the C919 depends heavily on Western technology, highlighting the complexity of achieving true aerospace independence.”, Aerospace Analyst Commentary

Production Scaling and Market Focus

In 2025, COMAC is targeting 30 Deliveries of the C919, a 130% increase from the previous year. The company aims to scale production to 150 units annually within five years. Major Chinese airlines, China Eastern, China Southern, and Air China, have collectively placed over 300 orders, signaling strong domestic demand and state support for the program.

However, the C919 still lacks certification from the Federal Aviation Administration (FAA) and the European Union Aviation Safety Agency (EASA), limiting its operations to Chinese and allied airspaces. This constraint significantly hampers COMAC’s ability to compete globally, even as it positions the aircraft at a premium price point of around $108 million per unit, higher than some Boeing 737 models.

Without global certification, COMAC’s strategy appears focused on dominating the Chinese domestic market, which is projected to require over 6,000 new narrowbody aircraft by 2042. Capturing even 25% of this demand would solidify COMAC’s financial footing and justify further investment in indigenous technologies.

Trade Tensions, Rare Earths, and Strategic Leverage

Rare Earths and the Engine Suspension

The suspension of GE’s export licenses in early 2025 was part of a broader escalation in the U.S.-China trade war. China had imposed restrictions on the export of seven rare earth elements essential for high-tech manufacturing, including aerospace components. These restrictions were a response to U.S. tariffs and were justified by China’s Ministry of Commerce on national security grounds.

Rare earths such as samarium, gadolinium, and dysprosium are critical for manufacturing magnets used in jet engines, guidance systems, and other defense-related technologies. The U.S. responded by tightening export controls on aerospace components, including engines destined for COMAC aircraft. This tit-for-tat dynamic threatened to derail production timelines and jeopardize COMAC’s backlog of over 1,000 aircraft orders.

By mid-2025, both countries began easing restrictions. China suspended its rare earth export limits for 90 days, while the U.S. reinstated licenses for GE and, reportedly, other aerospace firms like Honeywell. These moves suggest a willingness to decouple strategic competition from critical commercial supply chains, at least temporarily.

Strategic Exposure of Western Suppliers

GE Aerospace’s resumption of engine shipments is not just a win for COMAC; it also preserves a significant revenue stream for GE. With each LEAP-1C engine valued at roughly $12–$16 million, fulfilling the 2025 delivery schedule could generate $3.5–$4.8 billion. GE reported $9.9 billion in Q1 2025 revenue, with commercial engine services playing a key role.

Other Western suppliers are also deeply embedded in COMAC’s aircraft. Honeywell provides auxiliary power units, avionics, and flight control systems for the C919. Collins Aerospace, a subsidiary of RTX, supplies additional avionics and cockpit systems. While these companies have not confirmed the status of their licenses, their strategic exposure to COMAC remains high.

The resumption of shipments offers short-term stability but underscores the long-term risks of over-reliance on politically sensitive markets. Analysts warn that any future deterioration in trade relations could again disrupt supply chains, especially if rare earth agreements are not renewed or if new sanctions are imposed.

“The aerospace sector’s future hinges on diversified supply chains and diplomatic engagement to ensure operational continuity in an increasingly multipolar world.”, Trade Policy Expert

Geopolitical and Market Implications

While the current détente facilitates COMAC’s production goals, it does not resolve the fundamental challenges of certification and technological independence. The CJ-1000A, China’s domestically developed alternative to the LEAP-1C, remains years away from certification. Until then, COMAC must rely on Western propulsion to meet its delivery targets.

From a geopolitical perspective, the U.S. retains leverage through export controls and its dominance in aerospace technology. China, in turn, controls over 70% of global rare earth production, giving it a potent counterbalance. This mutual dependence creates a fragile equilibrium that could be disrupted by shifts in domestic policy, global alliances, or market conditions.

The broader aerospace market is also evolving. Airbus continues to expand its footprint in China with a local A320neo assembly line, while Boeing is gradually re-entering the market following recent trade resolutions. COMAC’s success will depend on its ability to scale production, secure certification, and eventually reduce its dependency on Western technology.

Conclusion: Strategic Stability or Temporary Reprieve?

The reinstatement of GE’s export licenses to COMAC represents a tactical easing of U.S.-China trade tensions, preserving crucial aerospace supply chains and enabling COMAC to pursue its near-term production goals. However, this move does not fundamentally alter the strategic landscape. COMAC remains heavily reliant on Western technology, while the U.S. continues to wield export controls as a policy tool.

Looking ahead, the sustainability of this truce will depend on continued diplomatic engagement and the successful negotiation of long-term trade frameworks. For COMAC, the path to global competitiveness runs through certification, technological autonomy, and resilient supply chains. For Western suppliers, strategic diversification and risk management will be essential in navigating an increasingly complex global market.

FAQ

What engines does GE supply to COMAC?
GE Aerospace supplies the LEAP-1C engine for the C919 and the CF34-10A engine for the C909 regional jet.

Why were the engine shipments suspended?
The U.S. suspended export licenses in response to China’s rare earth export restrictions, part of broader trade tensions between the two countries.

Has the issue been fully resolved?
Licenses have been reinstated for now, but the agreement is fragile and depends on ongoing diplomatic negotiations and trade stability.

Is COMAC a serious competitor to Airbus and Boeing?
COMAC has strong domestic support and a growing order book, but lacks international certification and technological independence, limiting its global competitiveness.

What is the significance of the C919’s certification status?
Without FAA or EASA certification, the C919 cannot operate in most international markets, restricting its sales to China and a few allied countries.

Sources: Reuters, Financial Times, Reuters, CNBC