China is discussing a plan to cut tariffs on imported plane parts, a move that may also benefit suppliers such as General Electric and Honeywell International.

A recent surge in exports from China to the U.S. is set to turn into a slump in January as tariffs imposed on Chinese goods rise.

The measure could have a “profound and long lasting adverse impact” on relations between the U.S. and China, analysts say.

The U.S. and its key Pacific allies announced plans to build a $1.7bn electricity grid in Papua New Guinea, in the latest effort to counter China’s growing influence in the region.