The Chinese Ministry of Commerce today announced immediate export restrictions on gallium, germanium, antimony, and super-hard materials to the United States. This action cites national security concerns and represents a significant escalation of trade tensions between the two countries. The restrictions follow recent U.S. actions to curb exports of semiconductor-related technology to China.
The new regulations effectively prohibit the export of these critical minerals to the U.S. market, strengthening existing export controls implemented in 2023. These minerals are vital components in various industries, including semiconductors, infrared technology, fibre optic cables, solar cells, ammunition, infrared missiles, nuclear weapons, and night-vision goggles. China is a dominant global producer of these materials, holding a significant share of global refined gallium and germanium output.
The Chinese government’s decision comes on the heels of the U.S. government’s expansion of its entity list, adding 140 Chinese companies to the list subject to strict export controls on chip-making equipment and technology. China’s Foreign Ministry issued a strong protest against these U.S. actions, characterizing them as an abuse of export control measures and a malicious suppression of China’s technological progress.
Industry groups in China have responded to the U.S. restrictions with calls for greater reliance on domestically produced semiconductors, citing concerns about the reliability and security of U.S. chips. The export restrictions are expected to impact global supply chains and potentially drive up prices for these critical minerals.
While the U.S. possesses domestic deposits of these minerals, current production is limited. The export restrictions are likely to accelerate efforts to develop domestic sources in the U.S. and other countries. Analysts predict a global scramble to secure alternative sources of these strategically important materials. The situation underscores the growing interdependence and escalating competition between the U.S. and China in the technology sector.
