China blocks shipment of rare minerals to US: What you should know

In response to the latest round of American restrictions on the Chinese chip industry, China has banned the export of several strategically important minerals to the United States.

On Tuesday, China’s Ministry of Commerce announced that it has banned the export of gallium, germanium, antimony and “super hard materials” to the United States. The ban on dual-use materials – those with civil and military applications – comes with the implementation of “more stringent end-user and end-use reviews for graphite exports to the US

The announcement follows Washington’s decision to tighten export restrictions on semiconductor manufacturing equipment and software tools and expand the list of Chinese companies subject to those controls.

China’s restrictions on rare earth metals also come just six weeks before Donald Trump’s inauguration and there are concerns that his presidency will usher in a new phase of trade war between the countries.

Which critical minerals has China banned?

The three minerals covered by the latest ban are the metals gallium and germanium and the semimetal antimony.

China had already introduced export controls on gallium and germanium in July 2023 to “ensure national security,” it said AP reported after the Commerce Department’s announcement.

In August, Beijing also said anyone wanting to export antimony and “antimony-related items” would have to apply for a license starting September 15. This was done, the ministry said at the time, “to ensure national security.” security and interests, as well as the fulfillment of international obligations such as non-proliferation.”

Newsweek The Chinese government has reached out to its embassy in Washington outside normal business hours for further comment on the new measures.

Why are these minerals so important?

Although gallium and germanium are not rare earth metals, their unique physical and chemical properties make them essential for the production of a variety of modern technologies.

The two metals are important components in semiconductors and therefore an extremely important resource for a variety of modern technologies.

Germanium is used as a dopant in fiber optic cables to improve signal transmission, and its high refractive index and transparency to infrared radiation make it ideal for use in thermal imaging devices, night vision systems and surveillance devices.

Gallium-based compounds are also crucial for the production of light-emitting diodes (LEDs), and both metals are used to make high-efficiency solar cells for solar panels.

According to a 2021 report from the US International Trade Commission, antimony is primarily used in flame retardants and lead-acid batteries. “In addition, antimony is used in a variety of military applications, including night vision goggles, explosive formulations, flares, nuclear weapons production and infrared sensors,” the report said.

Like gallium and germanium, antimony is also used to make semiconductor devices such as infrared sensors and diodes.

According to a 2023 European Union study of critical raw materials, China dominates today’s production of antimony, accounting for 56 percent of global supply. The report also found that China produces 94 percent of the world’s gallium and 83 percent of its germanium.

Which industries will be affected?

China’s dominance of the global supply chain for these minerals and the relative underdevelopment of other countries’ mining and refining capabilities mean that several industries could be affected by the new measures.

While the mention of the minerals’ “military purposes” in China’s announcement suggests that the defense industry is a key target of the ban, the wide-ranging uses of gallium, germanium and antimony also threaten to impact several other sectors.

Their importance in producing semiconductors, essential to almost all modern devices, means industries such as consumer electronics and renewable energy could be affected.

The use of germanium in fiber optic networks means that the telecommunications industry could also suffer from the resulting shortages in the US

However, British newspaper The Guardian reports, citing Chinese customs data, that deliveries of germanium, gallium and antimony had already fallen significantly in 2024 following the introduction of Beijing’s previous export controls.

Why did China ban the export of these minerals?

The ban can be seen as a response to the US crackdown on China’s chip industry and an escalation of saber rattling in the trade war between the two countries.

The Commerce Department’s Bureau of Industry and Security said on Monday that these would “significantly further impact” Beijing’s ability to produce advanced semiconductors that can be used in “the next generation of advanced weapons systems” as well as artificial intelligence military applications.

“This action is the culmination of the Biden-Harris Administration’s targeted approach, together with our allies and partners, to disrupt (the People’s Republic of China’s) ability to domesticate the production of advanced technologies that pose a risk to our national security. This is what US Secretary of Commerce Gina Raimondo said.

The trade restrictions also come amid growing threats from President-elect Trump that he will impose significant tariffs on all Chinese goods entering the United States when he takes office.

On Saturday, Trump took those threats further by promising to impose a 100 percent tariff on members of the BRICS economic alliance if they try to create a new, alternative currency to compete with the dollar.

Newsweek reached out to the White House and the Trump transition team via email outside of normal business hours seeking response to the latest restrictions.

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