GE Aerospace (GE) experienced a sharp decline in its stock price, plummeting 5.60% during Friday's pre-market trading session. This significant drop appears to be linked to China's recent announcement of export controls on certain rare earth metals, which has raised concerns across the broader GE ecosystem.

The news primarily affected GE Healthcare, a company spun off from General Electric in 2023, which saw its shares fall 7.1% in pre-market trading. China's decision to restrict exports of medium and heavy rare-earth metals, including gadolinium - a crucial component in MRI contrast agents - is expected to impact GE Healthcare's imaging segment, which accounted for 46% of its total sales in 2024.

While GE Aerospace is a separate entity from GE Healthcare, investors seem to be reacting to potential broader implications of China's export controls on the entire GE family of companies. The move by China could signal increasing trade tensions and supply chain disruptions, which may have far-reaching consequences for multinational corporations with significant exposure to the Chinese market. GE Healthcare's recent struggles in China, including a 15% decline in sales in 2024 and expectations of continued pressure in the near term, may be contributing to the negative sentiment surrounding GE Aerospace as well.