Highlights

• China imposes export ban on strategic minerals essential for semiconductors, electric vehicles (EVs), and military technology.
• The ban targets gallium, germanium, antimony, and rare earth processing technologies as retaliation for US technology restrictions.
• The move highlights ongoing technological and economic competition between the US and China in critical resource markets.

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China has announced a ban on exports of 'dual-use items' related to gallium, germanium, antimony, and superhard materials to the United States (opens in a new tab). The ban is on national security grounds and cites the minerals' use for military purposes (opens in a new tab)2 (opens in a new tab). Additionally, China has banned rare earth extraction and separation technologies (opens in a new tab), and will also control the export of rare antimony metals, ores, and oxides (opens in a new tab).

This latest salvo comes a day after the Biden administration expanded curbs on the sale of advanced American technology to China according to a New York Times (opens in a new tab) piece this morning.

China has announced a ban on exporting critical rare minerals—gallium, germanium, and antimony—to the U.S., a direct response to recent U.S. restrictions on Chinese chip manufacturing technology. These minerals are vital for semiconductors, EVs, solar panels, and military technologies, underscoring their strategic importance.  China’s production apparatus controls about 90% of the market to refine, produce the magnets and other inputs needed for these products.

China, the world’s dominant producer of these materials, is leveraging its control over global supply chains to counter U.S. efforts to limit Beijing’s technological advancements. The ban further escalates the race between the two superpowers to dominate advanced technology sectors.

Key Details:

• Affected Materials: Gallium and germanium are essential for chips, cars, and solar panels; antimony is critical for flame retardants, batteries, and military applications.
• Expanded Restrictions: Graphite, crucial for EV batteries, will also face tighter export reviews.
• Retaliation: The move follows the Biden administration’s export controls on chipmaking tools and aims to protect U.S. supply chains.

Broader Context

Both nations frame these measures as national security priorities, but the tit-for-tat actions highlight mounting tensions. While the U.S. seeks to reduce dependence on China, this ban could disrupt industries, drive up material costs, and intensify efforts to secure alternative supplies.

Bottom Line

China’s export ban marks a significant escalation in the tech trade war, signaling its willingness to weaponize critical resources. As both sides double down on strategic decoupling, the global tech and defense industries face a challenging and uncertain future.

Rare Earth Exchanges advises the incoming Trump administration to consider a much longer trajectory with this vital topic.