By Reuters – China has officially prohibited the export of essential minerals gallium, germanium, and antimony to the United States as of Tuesday. This move comes as a reaction to America’s latest sanctions targeting Chinese semiconductor exports under the new administration of President-elect Donald Trump.
The restrictions are viewed as a significant escalation in the ongoing trade conflict between the two largest economies. These measures, mandated by the Chinese Commerce Ministry, are grounded in national security considerations, particularly highlighting the military applications of these minerals.
The directive states that, ‘In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.’ This ban applies specifically to the US market, reflecting Beijing’s growing frustration with American trade policies.
Background on Critical Minerals
Gallium and germanium are crucial for semiconductor manufacturing and various advanced technologies, including fiber optics and solar cells. Antimony finds its use in ammunition and weaponry. The ban on their export raises vital concerns regarding the supply chains of modern technology and military capabilities in the West.
Industry experts, including Todd Malan from Talon Metals, have expressed apprehensions, stating, ‘China has been signalling for some time that it’s willing to take these steps, so when is the U.S. going to learn its lesson?’ This sentiment underscores the need for the US to diversify its supply chains away from China.
The Reaction from the US
A spokesperson from the White House acknowledged the new restrictions, affirming that the United States would take necessary actions in response. The spokesperson emphasized the importance of reinforcing connections with other countries to secure critical supply chains, stating, ‘These new controls only underscore the importance of strengthening our efforts with other countries to de-risk and diversify critical supply chains away from PRC (China).’
Recent data shows that China has significantly dominated global production of these minerals, accounting for around 98.8% of refined gallium and 59.2% of refined germanium output this year alone.
The Broader Implications
This export ban could have ripple effects across various industries reliant on these critical minerals. The price of antimony, for instance, has surged, exemplifying the tightening access to these essential raw materials. According to information from Argus, prices of antimony trioxide in Rotterdam increased by 228% since the start of the year, currently sitting at $39,000 per metric ton.
In conclusion, how will the US adapt its strategies in global trade to navigate the complexities of these emerging challenges?
