China Bans Exports of Critical Minerals to U.S., Escalating Trade Tensions Amid Semiconductor Clampdown

China has intensified its trade conflict with the United States, announcing a ban on Tuesday targeting exports of gallium, germanium, and antimony—critical minerals with significant military applications. The move follows Washington’s latest restrictions on China’s semiconductor sector and comes just weeks before President-elect Donald Trump assumes office.

The Chinese Commerce Ministry issued the directive citing national security concerns, stating, “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.” The order also requires heightened scrutiny of graphite shipments, a key component of electric vehicle batteries.

Strategic Minerals in the Crossfire

Gallium and germanium are crucial for semiconductors, infrared technology, fiber optics, and solar cells. Antimony, meanwhile, is vital for ammunition and advanced weaponry. According to consultancy Project Blue, China dominates global production, accounting for 98.8% of refined gallium and 59.2% of refined germanium this year. The country also produced 48% of the world’s antimony in 2022.

Prices for these materials have surged amid growing supply chain uncertainties. Antimony trioxide prices in Rotterdam jumped 228% to $39,000 per metric ton by late November, reflecting a tightening global market.

The export ban builds on restrictions China introduced earlier this year but targets the U.S. market specifically, underscoring Beijing’s readiness to retaliate against Washington’s tightening grip on technology supply chains.

U.S. Response and Concerns

The White House has urgently assessed the new restrictions and pledged to take “necessary steps” to mitigate the fallout. A spokesperson emphasized the pressing need to diversify critical supply chains away from China, stating, “These controls highlight the urgency of the situation.”

Domestic stakeholders echoed the call for U.S. self-reliance. Jon Cherry, CEO of Perpetua Resources, which is developing an antimony mine in Idaho, accused China of “weaponizing access to minerals critical for the U.S. military and technology firms.” He urged accelerated investment in American mineral resources to reduce dependence on China.

Other U.S.-based companies, including United States Antimony, expect the bans to boost metal prices, providing opportunities for domestic suppliers. However, industry experts warn that developing alternative supply chains will take years, given the complexity of mining and refining operations.

Trade War Escalation

China’s announcement follows the U.S. Commerce Department’s restrictions on exports to 140 Chinese companies, including chip equipment maker Naura Technology Group. The ban is part of a broader effort to curb Beijing’s access to advanced semiconductor technology.

The developments signal a continuation of the trade tensions that defined Trump’s first term. During his campaign, Trump vowed to impose steep tariffs on Chinese goods, and his administration has already drawn criticism for escalating trade barriers.

“This is a trade war with no winners,” said Peter Arkell, chairman of the Global Mining Association of China. “China’s response was inevitable given the mounting restrictions imposed by the U.S.”

Industry Fallout

Chinese customs data shows a sharp decline in shipments of the banned minerals to the U.S., reflecting the policy’s immediate impact. Following the implementation of earlier restrictions, October antimony exports from China plummeted 97% compared to September.

The ripple effects are being felt globally. Analysts warn that Beijing could extend the curbs to other critical minerals such as nickel or cobalt, further straining global supply chains already reeling from geopolitical tensions.

Meanwhile, Chinese industry groups have urged domestic firms to prioritize homegrown semiconductors, citing reliability and security concerns over U.S. products. This aligns with Beijing’s broader push for technological self-sufficiency amid mounting trade hostilities.

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