China Tightens Export Restrictions on Critical Minerals Amid Escalating U.S. Trade Tensions

China announced a ban on exports to the United States of key minerals with potential military applications, including gallium, germanium, antimony, and superhard materials, citing national security concerns. The move, effective immediately, follows Washington’s latest crackdown on China’s semiconductor sector.

The directive, issued by China’s Ministry of Commerce, also imposes stricter reviews on the end-use of graphite shipments 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.

This measure escalates trade tensions between the world’s two largest economies, which have been at odds over critical technologies and supply chains. Although the U.S. was a key market for gallium and germanium exports last year, Chinese customs data indicate no shipments of these minerals to the U.S. this year through October.

Strategic Minerals and Their Uses

Gallium and germanium are vital for semiconductors, with germanium also playing a critical role in infrared technology, fiber optic cables, and solar cells. Antimony, predominantly mined in China, is used in military applications such as ammunition, infrared missiles, and night-vision equipment, as well as in batteries and photovoltaic systems.

China’s export controls, first introduced last year, have had a significant impact on the global supply of these minerals. October shipments of antimony products from China dropped 97% compared to September, reflecting the enforcement of stricter export limits.

Retaliatory Move Against U.S. Semiconductor Restrictions

The announcement comes just a day after the United States imposed new export controls targeting 140 Chinese companies, including Naura Technology Group, in its third crackdown on China’s semiconductor industry in three years. These restrictions aim to curtail China’s access to advanced chip technologies with potential military applications.

China's latest restrictions underscore its strategic leverage in controlling critical materials essential for high-tech industries, signaling further strain in U.S.-China trade relations.