US lets GE restart jet engine shipments to China's COMAC, source says
The United States this week also lifted restrictions on exports to China for chip design software developers and ethane producers, suggesting trade talks between the two countries are moving forward.
License suspensions and new license requirements on the different exports had been issued several weeks ago as part of the ongoing trade war between the world's two biggest economies.
GE did not respond to an email request for comment, nor did the Commerce Department, which notified GE it could restart shipments.
Licenses for GE Aerospace affect engines sold to China's state-owned aerospace manufacturer COMAC, which wants to compete internationally against dominant plane makers Airbus (AIR.PA), opens new tab and Boeing (BA.N), opens new tab.
A spokesperson for the Chinese embassy in Washington did not immediately respond to a request for comment.
The restrictions were among the many countermeasures imposed by U.S. President Donald Trump's administration in response to China's export restrictions on rare earths and related magnets in April.
Beijing's move on rare earths, part of retaliation against Trump's earlier tariffs this year, has upended supply chains central to automakers, aerospace manufacturers, semiconductor companies and military contractors. The issue threatened to scupper a bilateral trade deal.
The license suspensions lifted for GE affect LEAP-1C engines to COMAC for its C919 single-aisle aircraft, and GE's CF34 engine for COMAC's C909 regional jet, according to the person familiar, who declined to be identified because they were not authorized to speak publicly.
The LEAP 1-C engines are the product of a joint venture between GE Aerospace and France's Safran (SAF.PA), opens new tab.
The C919 is made in China but many of its components come from overseas.
At least one other aerospace company also had its license suspensions for China lifted on Thursday, according to another person, who declined to identify the company.
Honeywell (HON.O), opens new tab Aerospace has supplied COMAC's C919, too, providing an auxiliary power system, wheels and brakes, flight control package, and navigation package. Honeywell did not return a request for comment.
Collins Aerospace, a subsidiary of RTX (RTX.N), opens new tab, which also supplies components for COMAC, declined to comment on the status of its licenses.
In recent weeks, the U.S. also suspended licenses for nuclear equipment suppliers to sell to China's power plants. U.S. nuclear equipment suppliers include Westinghouse and Emerson (EMR.N), opens new tab.
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The Guardian
34 minutes ago
- The Guardian
Donald Trump's UFC stunt is more than a circus. It's authoritarian theatre
Ten years ago – before I became an investigative journalist – I found myself working as a color commentator for a Russian mixed martial arts organization bankrolled by an oligarch deep in Vladimir Putin's orbit. The job took me around the Russian Federation and its neighboring states, allowing me to pursue unique stories that would otherwise have been out of my reach. I met a Latvian fighter who escaped a black magic cult run by his coach, attended an MMA show with the president of Ingushetia (now Russia's deputy minister of defence), and knocked back vodka shots with ex-KGB officers and Russian oligarchs. Then there was the time the organization attempted to host an event in Moscow's famed Red Square, one of the most historically and politically significant landmarks in Russia. It also sits adjacent to the Kremlin, the seat of Russia's political power. The event would have been a chance for the organization and its oligarch to ingratiate themselves to Putin, a known MMA fan who had previously attended their shows. Logistical issues, including security concerns and layers of bureaucratic red tape, rendered the event impossible at the time. But the incident stuck with me nonetheless as an example of the political undercurrent flowing through the sport. That memory became especially relevant as US president Donald Trump announced plans to host a Ultimate Fighting Championship (UFC) event at the White House to commemorate the nation's 250th birthday next year. Speaking to a crowd of supporters during a Salute to America event in Iowa Thursday, Trump said: 'Does anybody watch UFC? The great Dana White? We're going to have a UFC fight. We're going to have a UFC fight – think of this – on the grounds of the White House. We have a lot of land there.' White House press secretary Karoline Leavitt confirmed the news during the press briefing, adding that the president was 'dead serious' about hosting a UFC event at the official residence and workplace of the president. The announcement comes as no surprise given Trump longstanding relationship with the UFC, it current owner Ari Emanuel, and its CEO Dana White. Over the past few years, Trump has frequently attended UFC events, basking in the admiration of the young, predominantly male crowd. He cultivated relationships with fighters, leveraging their support to portray himself as a symbolic strongman. He embraced the UFC's culture of defiance, machismo and spectacle to help buttress his image as a rebel against liberal norms. It has also hastened the replacement of America's conventional political culture with an abrasive new blend of entertainment and confrontational politics, perfectly embodied by both Trump and White. The UFC CEO stumped for Trump at three Republican National Conventions and a slew of campaign rallies over the past eight years. He traveled with the president on Air Force One and produced a propaganda documentary on Trump entitled Combatant-in-Chief. And when Trump won the 2024 presidential election, it was White who took the stage at his victory party – because, naturally, Trump needed his fight promoter to seal the deal. For the UFC, its association with Trump has granted the once-renegade promotion a new kind of political legitimacy and influence. It also set it apart from other sports leagues through its unapologetically conservative posture. The UFC is even sponsoring the United States Semiquincentennial dubbed America 250, joining the likes of Amazon, The Coca-Cola Company, Oracle and Walmart. Since taking office in January, Trump has attended two separate UFC events. He most recently attended UFC 316 in June just hours after signing a memo ordering the deployment of 2,000 National Guard troops to Los Angeles County after Ice immigration raids sparked mass protests. He nevertheless enjoyed a standing ovation from the fans in attendance, and glowing endorsements from the fighters, one of whom even kneeled before Trump. UFC champion Kayla Harrison embraced him, planted a kiss on his cheek, and wrapped her championship belt around his waist as his family and supporters looked on in delight. It was a spectacle befitting the strongman Trump imagines himself to be. Which is why Trump's plan to stage a UFC event at the White House makes perfect sense. It is the natural climax of a partnership in which the UFC has become the stage for Maga mythology. It carries shades of fascist Italy under Benito Mussolini, particularly its obsession with masculinity, spectacle, and nationalism – but with a modern, American twist. Fascist Italy used rallies, parades and sports events to project strength and unity. Sports, especially combat sports, were used as tools to cultivate Mussolini's ideal masculinity and portray Italy as a strong and powerful nation. Similarly, Trump has relied on the UFC to project his tough-guy image, and to celebrate his brand of nationalistic masculinity. From name-dropping champions who endorse him to suggesting a tournament that would pit UFC fighters against illegal migrants, Trump has repeatedly found ways to make UFC-style machismo a part of his political brand. Since returning to office in January, Trump's presidency has been marked by a purge of federal agencies, crackdowns on dissent and immigration, and hollowing out institutions once designed as guardrails against abuses in presidential power. Loyalty to Trump, rather than the Constitution and the American people, has become the primary litmus test for political advancement. Meanwhile, sports have emerged as a central feature of his administration, advancing his policies while projecting a cult of personality and the celebration of violence. All of these are the hallmarks of authoritarianism. There was once a time when the US could point to the authoritarian pageantry of regimes like Mussolini's Italy and claim at least some moral distance. That line is no longer visible. What was once soft power borrowed from strongmen is now being proudly performed on America's own front lawn. Karim Zidan writes a regular newsletter on the intersection of sports and authoritarian politics.
Reuters
35 minutes ago
- Reuters
US fiscal folly could create big, beautiful debt spiral
LONDON, July 3 (Reuters) - The U.S. tax and spending bill passed on July 3 is expected to add more than $3 trillion to the country's deficit over the next decade. If the current debt trajectory continues unabated, it could set off a slow motion debt spiral that could endanger the Federal Reserve's independence. The sobering long-term debt projections of the Congressional Budget Office, opens new tab may actually understate the likely impact on U.S. debt-to-GDP levels of President Donald Trump's "One Big Beautiful Bill". The CBO based its estimate on the assumption that temporary increases in government spending and tax cuts will sunset at a projected date. But this new budget bill, which extended previous tax cuts and other measures, has shown that this sunset often never arrives. Thus, the long-term projections in the U.S. Treasury's annual financial report, opens new tab may be more realistic since they assume the current rate of government spending will continue indefinitely. In the Treasury forecast, the U.S. debt-to-GDP ratio is projected to increase to over 200% in 2050 compared to the CBO's estimate of around 145%. Scarier still, the Treasury forecasts that the U.S. debt-to-GDP ratio will reach 535% by 2100 if current spending plans continue. Proponents of tax cuts argue that they boost GDP growth and thus will slow the rise in debt-to-GDP, but the CBO estimates that the House Bill will only increase real GDP by an average of 0.5%, opens new tab over 10 years or 0.04% per year relative to the CBO's January 2025 projections. The Tax Foundation estimates that the Senate Bill will boost GDP growth by 1.2%, opens new tab in the 'long run'. That hardly makes a difference compared to an expected debt increase totalling almost 10% of GDP. If today's debt dynamics persist, the risk premiums in the U.S. Treasury market will almost certainly climb over the long run. Economists Martin Ademmer and Jamie Rush, opens new tab have analysed the drivers of 10-year Treasury real yields since 1970. They concluded that investors typically demand more risk compensation as the U.S. deficit increases, especially when there is competition from an ample supply of safe assets globally. Thus, Treasury yields rise. Their analysis concludes that these two factors together lifted the natural 10-year real yield for Treasuries by 1.3 percentage points between 2005 and 2023. If the deficit projections for the next decade are realized, this trend should continue. With all this in mind, it was notable that U.S. Treasury Secretary Scott Bessent said last week, opens new tab that he would not boost long-term Treasury bond sales given today's high interest rates. Since the pandemic, the average duration of U.S. government debt has declined significantly as the Treasury has favoured bills over longer-term instruments in an effort to keep interest expenses under control. One reading of Bessent's comments is that the Treasury is concerned about the country's ability to continue servicing its long-term debts if it borrows at today's elevated yields, a message that could push Treasuries' risk premium even higher, making long-term borrowing even less tenable. This reminds me of a similar episode in which a heavily indebted country faced a sudden spike in its already large deficit. As investors lost trust in the country's ability to pay back its debt, long-term yields rose, which in turn forced the government to issue debt at shorter and shorter maturities. This signalled to the market that the government would struggle to pay the existing debt, and this pushed long-term government bond yields even higher. The country's debt entered a doom loop. The country in question: Greece after the 2009 financial crisis. To be clear, I do not expect the U.S. to experience a similar implosion. There are crucial differences between the U.S. and Greece that should prevent this, not least the ability of the U.S. to devalue the dollar and inflate away some of its debt. Greece, as a euro zone member, had no such flexibility. But the new U.S. budget increases the possibility that the U.S. could face a similar debt drama, only in slow motion. If long-term Treasury yields remain higher for longer, the Treasury is apt to continue shortening the duration of its debt. This, in turn, could create a vicious cycle by making government interest expenses more volatile, further imperiling U.S. fiscal health and making longer-term debt even riskier. There appear to be three main off ramps for the U.S. One: politicians could become fiscally prudent and significantly reduce the deficit to a sustainable level. This seems unlikely given both parties' recent track records. Two: the Treasury could impose capital controls to artificially increase demand for Treasuries. 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ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI, opens new tab can help you keep up. Follow ROI on LinkedIn,, opens new tab and X., opens new tab
The Guardian
37 minutes ago
- The Guardian
Hamas says it is ready to enter ceasefire negotiations in ‘positive spirit'
Hamas said it had responded on Friday in 'a positive spirit' to a US-brokered Gaza ceasefire proposal and was prepared to enter into talks on implementing the deal which envisages a release of hostages and negotiations on ending the conflict. US president Donald Trump earlier announced a 'final proposal' for a 60-day ceasefire in the nearly 21-month-old war between Israel and Hamas, stating he anticipated a reply from the parties in coming hours. On Friday evening Hamas wrote on its official website: 'The movement has delivered its response to the brotherly mediators, which was characterized by a positive spirit. Hamas is fully prepared, with all seriousness, to immediately enter a new round of negotiations on the mechanism for implementing this framework.' Israeli media reported that Israel had received Hamas's response and it was being examined. Speaking to reporters aboard Air Force One late on Friday, Trump said he was optimistic about the developments and there 'could be a Gaza deal' next week, although the situation could change. Earlier a source told the Guardian that Hamas leaders were close to accepting a proposed deal for a ceasefire in Gaza but want stronger guarantees that any pause in hostilities would lead to a permanent end to the 20-month war. The militant Islamist group has come under immense pressure in recent months, with its military leadership decimated and the Israeli military forcing its fighters out of former strongholds in the southern and central parts of Gaza. In recent days, Israel has ramped up its offensive, launching an intense wave of airstrikes across Gaza, killing more than 250 Palestinians, including many women and children, according to medical and civil defence officials. Hardline factions within Hamas had reluctantly accepted the need for a ceasefire to allow the organisation to regroup and plan a new strategy, one source familiar with the internal debate said. Since a previous ceasefire collapsed in March, more than 6,000 people have been killed in Gaza and an acute humanitarian crisis has worsened. Efforts for a new truce in Gaza gathered momentum after the US secured a ceasefire to end the 12-day conflict between Israel and Iran last month. On Tuesday, Trump announced that Israel had accepted the conditions needed to finalise a 60-day ceasefire, during which the parties would work to end the war. When asked on Thursday if Hamas had agreed to the latest ceasefire deal framework, he said: 'We'll see what happens. We are going to know over the next 24 hours.' Benjamin Netanyahu is expected to fly to Washington on Sunday for talks with Trump about the war in Gaza, the recent war between Israel and Iran, and other regional issues. The Israeli prime minister has long resisted a permanent end to the war in Gaza, partly to retain the support of far-right allies in his ruling coalition. But Israel's successes in the war with Iran have strengthened his political position and opinion polls in Israel show strong support for a deal. A senior Israeli official told Channel 12, a major Israeli TV network: 'Judging by the signals from Hamas, there is a high probability that we will start proximity talks in the next few days. If there is consent to proximity talks, there will be a deal.' Other Israeli officials told Reuters preparations were in place to approve the ceasefire deal and that an Israeli delegation was getting ready to join indirect talks brokered by Qatar and Egypt to cement the deal if Hamas responded positively. The proposal includes the release of 10 living Israeli hostages held in Gaza since the Hamas attack on southern Israel in October 2023 that triggered the conflict, and the return of the bodies of 18 more, in exchange for Palestinian prisoners held in Israeli jails, an official familiar with the negotiations said on Thursday. Hamas seized 251 hostages during the 2023 attack. Less than half of the 50 who remain in Gaza are believed to be alive. Aid would enter Gaza immediately under the agreement, and the Israeli military would carry out a phased withdrawal from parts of the territory, according to the proposal. Negotiations would immediately start on a permanent ceasefire. 'We sure hope it's a done deal, but I think it's all going to be what Hamas is willing to accept,' Mike Huckabee, the US ambassador to Israel, told Channel 12 on Thursday. 'One thing is clear: the president wants it to be over. The prime minister wants it to be over. The American people, the Israeli people, want it to be over.' Sign up to First Thing Our US morning briefing breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion The delivery of more aid to Gaza has been a principal demand of Hamas throughout negotiations. Israel imposed an 11-week blockade in March, which was only slightly eased in May under huge international pressure as famine loomed. The Gaza Humanitarian Foundation (GHF), a secretive private organisation backed by the US and Israel that was charged with delivering food in Gaza, has been dogged by controversy. Hundreds have been killed by Israeli fire while seeking aid at the GHF's hubs and after gathering in crowds at locations where convoys sent by the UN have been stopped. On Friday, a report by the BBC quoted a former GHF employee describing colleagues firing towards Palestinians who had posed no threat, with many appearing to have been seriously hurt on several occasions. The GHF employee told the BBC he and others had been given no clear rules of engagement or standard operating procedures, and were told by one team leader: 'If you feel threatened, shoot – shoot to kill and ask questions later.' The GHF said the allegations, which were also made by former employees quoted by the Associated Press on Thursday, were categorically false and that no civilians had came under fire at their distribution sites. The Israeli military has denied any intent to harm civilians seeking aid, saying it only fired warning shots. Speaking to journalists while on his way to a rally in Iowa on Thursday, Trump said: 'I want the people of Gaza to be safe. That's more important than anything else. They've gone through hell.' Netanyahu visited Israel's Nir Oz kibbutz on Thursday for the first time since the 2023 Hamas attack. The community was one of the worst-hit in the attack, with nearly one in four residents kidnapped or killed. He said: 'I feel a deep commitment – first of all to ensure the return of all of our hostages, all of them. There are still 20 who are alive and there are also those who are deceased, and we will bring them all back.' The prime minister has been heavily criticised for refusing to take responsibility for the failures that allowed the 2023 attack, during which Hamas-led militants killed 1,200, mostly civilians, and has been repeatedly accused of prioritising his political survival over the fate of the hostages. Israel's retaliatory military campaign has killed at least 57,000 people in Gaza, also mostly civilians, according to a count by the territory's ministry of health that is considered reliable by the UN and many western governments. The Israeli military said it 'follows international law and takes feasible precautions to mitigate civilian harm' when striking 'terrorist targets'.
