The trade tensions between China and the United States escalated recently after US President-elect Donald Trump threatened to impose tariffs of up to 60 per cent on Chinese imports.
On Tuesday, China’s Commerce Ministry announced it would impose strict restrictions on exports of key high-tech minerals to the United States. Some dual-use items with both military and civilian applications will be prohibited from being exported to any U.S. military-related user.
The announcement mentioned that China will ban the export of key minerals to the United States, including gallium, germanium, antimony and superhard materials, and implement stricter end-user and end-use reviews for dual-use graphite exports to the United States.
The move comes after the United States announced it was placing 140 Chinese semiconductor companies on a list of trade restrictions, barring most U.S. suppliers from shipping to those companies, aimed at limiting China’s development potential in artificial intelligence and other advanced computing tasks, particularly those related to military applications.
A number of Chinese industry associations then issued statements saying that US chip products are no longer safe and reliable, and calling on domestic companies to prudently choose to purchase US chips.
Industry experts pointed out that the strict control of graphite means that the development of the United States in the battery and aerospace fields will be hampered. Materials such as gallium and germanium are important elements used in the manufacture of high-frequency electronic devices and optical fiber communication equipment. These key raw materials will directly affect the technological renewal of the United States in the high-tech field.
Gallium and germanium can be used in semiconductor manufacturing, while germanium can also be used in infrared technology, fiber optic cables and solar cells, and antimony can be used in the production of ammunition, infrared missiles, nuclear weapons, night vision equipment, batteries and photovoltaic equipment.
Last year, China accounted for 48 per cent of global antimony mining. China accounted for 59.2 percent of global refined germanium production and 98.8 percent of refined gallium production this year, according to UK-based Project Blue, an energy transition information provider.
China is also the world’s leading producer of natural graphite, accounting for 77% of the global supply in 2023, while Madagascar who comes in the second place only has 6.25% of the supply.
The U.S. Geological Survey warned in a report last month that a total export ban on gallium and germanium could cost the U.S. economy $3.4 billion. As of October, China had not exported germanium or gallium to the United States, and shipments of antimony in October were down 97 percent from September, according to Chinese customs data.
The price of antimony trioxide in Rotterdam has surged 228 per cent since the start of the year to $39,000 a tonne on November 28.
