Rare Earth Exchanges

List of Elements and Minerals on China’s Restriction List to USA Grows

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Highlights

  • China implements export controls on five key metals: tungsten, tellurium, bismuth, molybdenum, and indium.
  • These controls have strategic implications for defense and clean energy industries.
  • The Chinese government claims the export restrictions are in line with international practices and aim to safeguard global industrial supply chains.
  • The export controls are viewed as a direct response to U.S. tariffs.
  • This represents escalating trade tensions between China and the United States.

The spokesperson of China’s Ministry of Commerce explained its latest export controls over rare minerals, saying they are in line with international practices. At a press conference, the spokesperson emphasized that minerals like tungsten have dual-use properties with potential military applications, making stricter regulations necessary.  Officials say the move underscores China’s commitment to global peace and regional stability. China is urging all foreign Enterprises to comply with these export control laws, assuring that qualifying export applications will still be approved. However, much of the news broadcasts out of China remain heavily biased.

Meanwhile, the spokesperson said Beijing is also acting against two US companies, PVH group and Illumina, adding them to its unreliable entity list. These firms have violated fair trade principles and discriminated against Chinese businesses. According to the Chinese-focused outlet, officials say legal measures will follow, though specifics remain unclear.

China has always handled export control and unreliable entity lists with prudence according to that nation’s some could argue biased view on the situation. The spokesperson said that the Chinese government remains committed to enhancing exchanges with countries worldwide; to join, they safeguard the security and stability of global industrial and supply chains. China welcomes foreign enterprises to invest and operate in China and is dedicated to providing a stable, fair, and predictable business environment for law-abiding foreign companies. But is this really the case? How accurate is the news broadcast by Shanghai Eye (opens in a new tab)?

Also, U.S. President Donald Trump announced plans to impose new 25% tariffs on all steel and aluminum imports, with an official statement expected on Monday. Speaking aboard Air Force One, he also mentioned plans to introduce “reciprocal tariffs” to align U.S. trade policies with those of its partners.

During his first term, Trump imposed 25% tariffs on steel and 10% on aluminum, citing national security concerns. However, the China Daily reports that he later granted exemptions to Canada, Mexico, and Brazil. Under President Joe Biden, some exemptions remained, and additional quotas were extended to the EU, Britain, and Japan.

On February 1, Trump signed executive orders imposing a 25% tariff on imports from Canada and Mexico and a 10% hike on Chinese imports. The move faced widespread opposition and immediate retaliation, prompting him to pause the tariffs on Mexico and Canada for one month to allow for negotiations.

China Restricts Key Minerals Last Week.

As reported last week, China announced immediate export controls on five key metals—tungsten, tellurium, bismuth, molybdenum, and indium—used in defense, clean energy, and other industries in the U.S.

This move, requiring export licenses for these metals, is a direct response to new U.S. tariffs imposed by President Donald Trump, including a 10% tariff on Chinese goods. It follows China’s December ban on gallium, germanium, and antimony exports and adds to retaliatory tariffs on U.S. imports like coal, crude oil, and farm equipment.

These restricted metals are critical to various industries. Tungsten, mainly used in construction and drilling, has not been mined commercially in the U.S. since 2015, while tellurium, essential for solar panels and memory chips, is a rare element mostly refined outside the U.S. Bismuth, found in pharmaceuticals and fire safety systems, has not been refined domestically since 1997. Molybdenum, crucial for alloys and missile production, is produced significantly in China, with the U.S. only accounting for 12% of global output. Lastly, indium, vital for electronics and 5G networks, is typically extracted as a byproduct of other metal mining. China’s dominance in producing these materials underscores the growing vulnerability of U.S. supply chains amid escalating trade tensions.

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