Wednesday, December 4, 2024
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China bans exports of key minerals to US

China barred exports to the United States of gallium, germanium and antimony-related products with potential military applications, Reuters reported.

The move came a day after Washington’s latest crackdown on China’s microchip sector. Beijing’s directive on so-called dual-use items, military or civilian, also requires stricter monitoring of the end use of graphite products shipped to the US.

Gallium and germanium are used in semiconductors, whereas germanium is needed in infrared technology, fibre optic cables and solar cells. Meanwhile, antimony is required for photovoltaic equipment, infrared missiles and nuclear weapons.

Total shipments of Chinese antimony products also fell 97% in October compared to September after the restrictions took effect. China accounted for 59.2% of refined germanium production and 98.8% of refined gallium production this year, according to consulting firm Project Blue.

The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West.

China’s announcement came after the US imposed restrictions on Chinese semiconductor industry for the third time in three years on Monday. The limitations affected the exports of 140 companies, including chip equipment manufacturer Naura Technology Group.

US President-elect Donald Trump stated he would impose 10% tariffs on Chinese goods and threatened 60% duties on Chinese imports during his presidential campaign.

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