


WASHINGTON — The U.S.-China trade conflict is quickly morphing into a fight over global supply chains as the two nations limit the sharing of critical technologies that could have lasting consequences for scores of industries.
The United States last week suspended some sales to China of components and software used in jet engines and semiconductors, a response to a clampdown by Beijing on the export of minerals used in large sectors of manufacturing.
Both sides over the past few days have accused the other of operating in bad faith.
The supply chain warfare, which comes on top of tariffs the two countries have inflicted on the other's imports, has alarmed companies that say they cannot make their products without components sourced from both. And it has made officials in Washington increasingly nervous about other choke points where China could squeeze the United States, including pharmaceuticals or shipping.
In recent weeks, the airplane industry has emerged as both a weapon, and a victim, in this fight. The jet engine technology that powers airplanes, and the navigation systems that control them, largely come from the United States, developed by companies like General Electric.
In China's quest to build a viable competitor to Boeing, for example, it has had to source engine technology from GE Aerospace. But a jet engine also cannot be made without China.
Minerals that are processed there are essential for special coatings and components that help the engine operate smoothly at high temperatures, as well as other uses. Beijing restricted exports of those minerals, known as rare earths, in April after President Donald Trump began imposing high tariffs on Chinese imports.
The move has threatened to shutter what is left of advanced manufacturing in the U.S., including the work done by many defense contractors. In May, Ford Motor temporarily closed a factory in Chicago after one of its suppliers ran out of the magnets it needs to build cars.
The United States responded with its own tech restrictions. Last week, U.S. officials suspended some licenses that allowed American companies to ship airplane technology to China, as well as others related to biotechnology and semiconductors.
At the same time, officials in the departments of Defense and Interior and the National Security Council are accelerating efforts to find more domestic supplies of rare earths, including considering U.S. government funding for new mines and processing facilities, people familiar with the matter said.
The supply chain battle has been years in the making. And both countries have been trying to guard against the other's control of strategic goods by diversifying their own sources of supply.
After Trump levied tariffs on China during his first term, many American companies established factories in countries outside China, including Vietnam and Mexico. Xi Jinping, China's leader, set out to make his country less reliant on foreign sources of energy and technology by pumping huge investments into factories making semiconductors, solar panels and electric vehicles.