China bans key minerals’ export to U.S.

Chinese President Xi Jinping

China has banned exports of items related to the minerals gallium, germanium, and antimony that have potential military applications to the United States.

The Chinese commerce ministry announced this on Tuesday, December 3, 2024, a day after the U.S.’s latest crackdown on China’s chip sector.

Beijing’s directive on so-called dual-use items with both military and civilian use, which cites national security concerns and takes immediate effect, also requires stricter review of end-usage for graphite items shipped 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 said.

The curbs strengthen enforcement of existing limits on exports of the critical minerals that Beijing began rolling out last year, but apply only to the U.S., in the latest escalation of trade tensions between the world’s two largest economies ahead of President-elect Donald Trump taking office.

However, there have been no Chinese shipments of wrought and unwrought germanium or gallium to the U.S. this year through October, although it was the fourth and fifth-largest market for the minerals, respectively, a year earlier, Chinese customs data show.

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Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables, and solar cells.

Similarly, China’s overall October shipments of antimony products plunged by 97% from September after Beijing’s move to limit its exports took effect, Reuters reported.

China accounted last year for 48% of globally mined antimony, which is used in ammunition, infrared missiles, nuclear weapons and night vision goggles, as well as in batteries and photovoltaic equipment.

This year, China has accounted for 59.2% of refined germanium output and 98.8% of refined gallium production, according to consultancy Project Blue.

“The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West,” said Project Blue co-founder Jack Bedder.

Trump, whose first White House term was marked by a bitter trade war with China, has said he will implement 10% tariffs on Chinese goods and threatened 60% tariffs on Chinese imports during his presidential campaign.

The Star