Noor Trends News, Technical Analysis, Educational Tools and Recommendations
China has announced a ban on exporting minerals with potential military applications, including gallium, germanium, and antimony, to the United States. The move, effective immediately, comes a day after Washington imposed stricter measures targeting China’s chip sector, further intensifying trade tensions between the two global economic giants.
Details of the Export Ban
China’s Ministry of Commerce highlighted that the restrictions focus on so-called dual-use items, which serve both civilian and military purposes, citing national security concerns as the basis for the directive. The announcement also imposes tighter scrutiny on the end-use of graphite products destined for the U.S. market.
While the export controls reinforce existing limits introduced last year, the latest measures specifically target shipments to the U.S. They align with Beijing’s ongoing strategy to counteract Washington’s technological and economic policies, particularly ahead of President-elect Donald Trump’s upcoming term.
Market Impact and Trade Data
Despite the new restrictions, Chinese customs data reveals no exports of wrought or unwrought gallium or germanium to the U.S. during the first ten months of this year. This contrasts sharply with 2022, when the U.S. was a significant destination for these critical minerals, ranking as the fourth-largest market for gallium and the fifth-largest for germanium.
Similarly, China’s overall shipments of antimony products saw a dramatic decline in October, plummeting by 97% compared to September, after Beijing implemented stricter export limits. Antimony, essential in manufacturing ammunition, infrared missile systems, nuclear weapons, and night vision goggles, is also widely used in batteries and photovoltaic equipment.
Critical Minerals and Their Applications
The minerals affected by China’s export controls play pivotal roles in advanced technology:
Gallium: Key in semiconductor manufacturing.
Germanium: Used in infrared technologies, fiber optic cables, and solar cells.
Antimony: Integral to defense applications such as infrared missiles and nuclear weapons, as well as in clean energy technologies like photovoltaic systems.
China dominates global production in these minerals, with a 48% share in antimony mining last year. The new restrictions are expected to create supply chain disruptions and increase competition for alternative sources.
Strategic Implications
This development underscores the growing economic and geopolitical divide between the U.S. and China, particularly in technology and resource security. The ban could accelerate global efforts to diversify supply chains and reduce reliance on Chinese exports, potentially reshaping trade dynamics in critical minerals.
