China has announced a ban on the export of gallium, germanium, and antimony to the United States, citing national security concerns. These minerals are crucial for semiconductors and military technologies, intensifying trade tensions between the two global superpowers.
The ban, effective immediately, strengthens existing restrictions and applies solely to the US. It comes just a day after Washington imposed tighter curbs on China’s semiconductor sector.
Details of the Ban
The Chinese Ministry of Commerce stated that:
- Minerals Affected: Gallium, germanium, antimony, and superhard materials.
- Reason for Ban: Dual-use potential in military and civilian applications, raising national security concerns.
- Stricter Export Reviews: Enhanced scrutiny of graphite exports to the US.
Importance of the Restricted Minerals
These minerals are vital for various industries:
- Gallium and Germanium: Used in semiconductors, infrared technology, solar cells, and fiber optics.
- Antimony: Essential for ammunition, infrared missiles, night-vision goggles, and batteries.
China dominates the global supply, producing 98.8% of refined gallium and 59.2% of refined germanium in 2024. It also accounted for 48% of mined antimony last year.
Impact on Global Supply Chains
The export ban has already disrupted supply chains:
- October saw a 97% drop in antimony shipments from China.
- Prices for antimony trioxide in Europe surged by 228% this year, reaching $39,000 per metric ton.
“Countries may now scramble to locate antimony deposits, leading to intensified exploration efforts globally,” said a European metals trader.
US-China Trade War Heats Up
This move follows Washington’s latest crackdown, targeting 140 Chinese companies, including semiconductor giant Naura Technology Group.
Former US President Donald Trump, set to return to office in January 2025, has vowed to impose 10%-60% tariffs on Chinese goods, potentially worsening tensions.
Reactions and Industry Response
Experts view the ban as retaliation against US semiconductor restrictions.
- Peter Arkell, chairman of the Global Mining Association of China, called it a “trade war with no winners.”
- Chinese industry groups are urging local businesses to use domestically produced semiconductors, claiming US chips are “no longer reliable.”
China’s Strategic Move
With this ban, China has underscored its dominance in the rare mineral market, highlighting its leverage in global tech and military supply chains amid escalating trade disputes with the US.
