China strikes back, bans US exports of critical chipmaking minerals
Make us a preferred source
Make us a preferred source on Google
The news: China has imposed an immediate export ban of minerals and metals used in chip making and for military applications to the US, including gallium, germanium, antimony and superhard materials—resources it overwhelmingly dominates globally.
The context: In a statement widely cited by media, the Ministry of Commerce said that, effective immediately, the export of items categorised as “dual-use” – those with both civilian and military applications – was banned to the US.
The move comes just a day after Washington unveiled the latest sanctions targeting China’s semiconductor sector and blacklisting over 100 Chinese firms over national security concerns.
Beijing’s curbs also include tighter controls on graphite, a common material in the defence sector, with the escalating tit-for-tat measures further threatening a squeeze of critical supply chains for semiconductors, batteries and military hardware.
The numbers: China dominates global production of the key materials, critical for semiconductors, batteries and military applications.
It produces 98.8% of the world’s gallium supply and 60% of germanium, the FT noted citing the US Geological Survey. Reuters pointed out China last year accounted for 48% of globally mined antimony, used in the production of ammunition, infrared missiles, nuclear weapons, night-vision googles, batteries and photovoltaic equipment.
Beijing had already been tightening controls on their export since last year in response to tightening western chip sanctions. Its curbs on shipments of germanium and gallium led to a large increase in the minerals’ prices in Europe, with antimony trioxide soaring 228% this year.
What they said: “The US has broadened the concept of national security, politicising and weaponising trade and technology issues, and abused export control measures,” China’s commerce ministry said in a statement.
“To safeguard national security . . . China has decided to strengthen export controls on dual-use items to the US,” it added.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.”
Peter Arkell, chairman of the Global Mining Association of China was cited by Reuters saying, “it comes as no surprise that China has responded to the increasing restrictions by American authorities, current and imminent, with its own restrictions on the supply of these strategic minerals.”
“It's a trade war that has no winners," he added.
Bloomberg quoted Trivium China senior analyst Joe Mazur saying: "Export bans on critical minerals have been in the hopper for some time and are intended as a warning.”
"It’s a clear signal that China is preparing to strike back more forcefully against US economic pressure than it has in the past few years," Mazur added.
Chinese industry groups urged reduced reliance on US chips, calling them unsafe, as Wingtech, a major Apple supplier, saw shares drop over 10% after its blacklisting.
The sources: South China Morning Post, The Financial Times , Bloomberg, Reuters
