China has vowed to ban exports of critical high-tech materials, including gallium, germanium, and antimony, to the United States. This decision comes as a response to the recent expansion of U.S. export controls that target Chinese companies involved in semiconductor manufacturing. The Chinese Commerce Ministry’s announcement reflects rising tensions between the two countries regarding trade and technology.
The restrictions from China follow the U.S. government’s decision to add 140 Chinese companies to its entity list, subjecting them to stringent export controls. These companies primarily focus on advanced technologies crucial for various applications, including military use. In a press briefing, Lin Jian, a spokesperson for China’s Foreign Ministry, criticized the U.S. for what he described as unwarranted encroachments on China’s technological progress, calling the U.S. measures an abuse of national security concepts.
The strategic materials targeted by China are vital for producing computer chips, batteries, and other high-tech products. After implementing a licensing requirement for exports of gallium and germanium in July, Beijing further restricted antimony exports in August, which are essential for a range of applications from batteries to military equipment.
China possesses a significant share of the global supply for these materials, producing critical components necessary for mobile devices, electric vehicles, and military applications. In response to the U.S. restrictions, Chinese industry groups have expressed strong opposition, arguing that these export controls disrupt international trade and harm the global supply chain.
As the U.S. now relies on China for approximately half of its gallium and germanium supplies, this situation blurs the line between national security and economic competition. The ongoing trade confrontations could lead to increased prices for these minerals. This past year has already seen antimony prices more than double and significant price hikes in gallium, germanium, and graphite.
The developments underscore a deeply contentious period in U.S.-China relations driven by a complex interplay of trade, technology, and national security. Although tensions are high, there remains hope that dialogue and cooperation might eventually pave the way towards more stable economic relations. This precarious situation might also catalyze investments in domestic production capabilities for critical minerals in the U.S., potentially leading to a more resilient supply chain in the future.