The Trump administration is reportedly fearful China may cut into the global jet-engine market. GE could pay the price.
General Electric could face some consequences from the U.S.-China trade war, The Wall Street Journal reports.
The Trump administration is considering halting deliveries of jet engines co-produced by the American manufacturer for the development of a Chinese jetliner which is reportedly years behind schedule, a person familiar with the discussions said. The White House's fear is tied to broader efforts to protect American intellectual property from Beijing — Washington reportedly believes China could eventually reverse-engineer the engines, break into the global engine-market, and compete with U.S. business interests.
Unsurprisingly, GE is arguing against the proposal. On the one hand, the company says reverse-engineering the highly advanced techniques is a lot harder than the Trump administration seems to think. But, even if China was able to pull that off, they could have already started the process since the engines have been in the country for years. So, with that in mind, GE doesn't think he makes a whole lot of sense to cease the operations now.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Administration officials are supposed to discuss the situation at a meeting this week. Read more at The Wall Street Journal.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
Why is China targeting Nvidia? (And why is the AI giant so important?)
Today's Big Question A new front in the 'chip war' with the US
By Joel Mathis, The Week US Published
-
Judges block $25B Kroger-Albertsons merger
Speed Read The proposed merger between the supermarket giants was stalled when judges overseeing two separate cases blocked the deal
By Peter Weber, The Week US Published
-
Rupert Murdoch loses 'Succession' court battle
Speed Read Murdoch wanted to give full control of his empire to son Lachlan, ensuring Fox News' right-wing editorial slant
By Peter Weber, The Week US Published
-
Bitcoin surges above $100k in post-election rally
Speed Read Investors are betting that the incoming Trump administration will embrace crypto
By Peter Weber, The Week US Published
-
Enron mystery: 'sick joke' or serious revival?
Speed Read 23 years after its bankruptcy filing, the Texas energy firm has announced its resurrection
By Peter Weber, The Week US Published
-
Russia's currency crisis as sanctions bite
The Explainer Rouble plunges to lowest rate against dollar since invasion of Ukraine as economic toll finally begins to be felt
By Elliott Goat, The Week UK Published
-
Is this the end of the free trade era?
Today's Big Question Donald Trump's threat to impose crippling tariffs 'part of a broader turn towards protectionism in the West'
By Elliott Goat, The Week UK Published
-
US charges Indian tycoon with bribery, fraud
Speed Read Indian billionaire Gautam Adani has been indicted by US prosecutors for his role in a $265 million scheme to secure solar energy deals
By Peter Weber, The Week US Published