China bans key mineral exports to US
China has imposed an export ban on essential minerals, including gallium, germanium, and antimony, to the United States, citing national security concerns. The restrictions, announced by China’s commerce ministry on Tuesday, apply to dual-use items with both military and civilian applications and are set to take immediate effect.
The ministry stated “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” This action intensifies Beijing’s efforts to control the export of these critical minerals, which have significant uses in military technology, and follows the US latest move to curb Chinese influence in the semiconductor sector.
The new rules also impose stricter end-use review requirements on graphite items shipped to the US. While gallium, germanium, and antimony have already seen limited exports to the US this year, the trade curbs are seen as a direct response to Washington’s crackdown on China’s chip industry, which includes restrictions on 140 Chinese companies, including Naura Technology Group.
Gallium and germanium are critical for the production of semiconductors, with germanium also playing a key role in infrared technology, fibre optic cables, and solar cells. Antimony, on the other hand, is widely used in military applications, such as ammunition, infrared technology, and night vision goggles, as well as in batteries and photovoltaic equipment.
Data from Chinese customs reveals that shipments of wrought and unwrought germanium and gallium to the US have stalled this year, despite being the fourth and fifth-largest markets for these minerals last year.
The curbs have caused a sharp rise in prices, with antimony trioxide in Rotterdam surging by 228 per cent to $39,000 per metric ton as of November 28, 2024.
Notably, China dominates the global supply of these critical minerals, accounting for 59.2 per cent of refined germanium output and 98.8 per cent of refined gallium production this year. It also controls 48 per cent of the global antimony market.
As global demand for these materials grows, particularly in technology and defense industries, the export restrictions are expected to create significant supply challenges in the West.
The new restrictions follow the US’s third crackdown in three years on China’s semiconductor industry, which is already exacerbating tensions ahead of the 2024 US presidential election. Donald Trump, a vocal critic of China’s trade practices during his first term, has threatened to impose further tariffs on Chinese goods.
Attribution: Reuters
Subediting: M. S. Salama
