The U.S. government has reportedly granted GE Aerospace (GE) approval to restart exports of jet engines to China. This move marks an important step in reducing trade tensions between the U.S. and China. The decision follows weeks of license suspensions and tighter export controls, imposed as part of the ongoing trade tensions between the world’s two largest economies. Recently, the U.S. also removed chip-design software export curbs to China.
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General Electric Company, operating as GE Aerospace, manufactures jet engines, parts, and systems used in both commercial and military aircraft.
GE Aerospace Set to Power COMAC Again
The green light will allow GE to supply engines for China’s homegrown aircraft program, led by the state-backed Commercial Aircraft Corporation of China (COMAC).
The newly restored export licenses apply to GE engines sold to COMAC, which aims to compete globally with aerospace giants Airbus (EADSY) and Boeing (BA). Specifically, the lifted restrictions cover GE’s LEAP-1C engines for COMAC’s C919 narrow-body jet and CF34 engines for its C909 regional aircraft, according to a source familiar with the matter.
Notably, the LEAP-1C engines are developed through a joint venture between GE Aerospace and France’s Safran (FR:SAF). While the C919 jet is manufactured in China, many of its key components are sourced from foreign suppliers.
Is GE Aerospace Stock a Good Buy?
On TipRanks, GE stock has a consensus Strong Buy rating based on 12 Buys and one Hold assigned in the last three months. The average GE Aerospace stock price target of $243.40 implies a 1.41% downside from current levels.
Year-to-date, GE stock has gained over 40%.
