China Bans Export of Critical Minerals to U.S. Amid Rising Trade Tensions
China has announced a ban on exporting gallium, germanium, and antimony to the United States, citing national security concerns. The move, revealed by the Ministry of Commerce on Tuesday, is seen as a response to the U.S.’s recent tightening of restrictions on China’s semiconductor sector.
The new rules, which take immediate effect, also include stricter reviews of graphite-related exports to the U.S. “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry stated.
Gallium and germanium are vital in semiconductor manufacturing, infrared technology, fiber optic cables, and solar cells, while antimony is used in ammunition, infrared missiles, batteries, and night-vision equipment.
Impact on Global Supply Chains
The restrictions, which target dual-use materials with military and civilian applications, are the latest escalation in trade frictions between the world’s two largest economies. China dominates global production of these minerals, accounting for 98.8% of refined gallium, 59.2% of refined germanium, and 48% of mined antimony as of last year.
Export data shows that while shipments of gallium and germanium to the U.S. had already ceased earlier this year, the measures further tighten supply. Prices of antimony trioxide in Rotterdam have surged by 228% year-to-date, reflecting the growing scarcity of these critical resources.
Jack Bedder, co-founder of consultancy Project Blue, described the move as a “considerable escalation of tensions in supply chains where access to raw materials is already tight in the West.”
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Broader Trade Context
The ban comes a day after Washington imposed its third crackdown in three years on China’s semiconductor industry, targeting 140 Chinese companies, including Naura Technology Group. These measures are part of a broader strategy to limit China’s access to advanced technologies.
Former President Donald Trump, whose first term featured a contentious trade war with China, has proposed additional tariffs of up to 60% on Chinese goods, further fueling the strained relationship.
Chinese industry groups have also urged domestic companies to prioritize locally made semiconductors, arguing that U.S. chips are no longer reliable.
Strategic and Economic Implications
Peter Arkell, chairman of the Global Mining Association of China, remarked that these moves signal a deepening trade conflict. “It’s a trade war that has no winners,” he said.
The restrictions underscore China’s leverage over critical materials essential to global industries, particularly as nations race to secure resources for advanced technologies and defense. In response, Western countries are expected to intensify efforts to diversify supply chains and locate alternative sources of these key minerals.
