Thursday 5th Dec 2024
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China Bans Critical Mineral Exports to the U.S., Escalating Trade Tensions

China has imposed an export ban on three critical minerals—gallium, germanium, and antimony—used widely in semiconductors, military applications, and renewable energy technologies. The ban, announced Tuesday, is a response to escalating trade conflicts following the U.S.’s latest restrictions on Chinese semiconductor companies. The move adds to existing tensions between the two economic superpowers.
The Chinese Ministry of Commerce cited national security concerns and introduced stricter reviews of end-use for graphite, another critical material for electric vehicle batteries. The ban specifically targets the U.S., prohibiting exports of gallium, germanium, antimony, and related materials. Gallium and germanium are essential for semiconductors, solar cells, and fiber optics, while antimony is used in ammunition, infrared technology, and photovoltaic equipment.
China is the world’s leading producer of these materials, accounting for 59% of global refined germanium output, 98.8% of refined gallium, and 48% of mined antimony. The restrictions have already impacted global markets, with European antimony prices rising by 228% this year. Analysts warn of further disruptions as countries scramble to secure alternative sources.
The U.S. government is assessing the implications of the ban, with a White House spokesperson stating that measures would be taken to reduce dependency on Chinese supplies and diversify critical mineral sources. American companies like Perpetua Resources and United States Antimony expect to benefit from higher prices but acknowledge the time required to develop domestic mining capabilities.
The announcement follows Washington’s decision to restrict semiconductor technology exports to 140 Chinese companies and former President Donald Trump’s threats of increased tariffs on Chinese imports. Chinese industry groups have also urged local firms to replace U.S. semiconductors with domestic alternatives, citing reliability concerns.
Experts believe the ban marks a significant escalation in the trade conflict. “This trade war has no winners,” said Peter Arkell, chairman of the Global Mining Association of China, highlighting the potential for long-term disruption in global supply chains.