China has announced new restrictions on the export of key high-tech materials, including gallium, germanium, antimony, and other strategically critical substances, escalating tensions with the United States. According to an Associated Press report, the move follows Washington’s recent expansion of semiconductor-related export controls targeting Chinese companies.
The Chinese Commerce Ministry confirmed the new measures on Tuesday, emphasizing that the affected materials, which are used in computer chips, cars, and military technologies, are being restricted as a matter of national security. Beijing has previously imposed export controls on these materials, with requirements for special licensing introduced in mid-2023.
Gallium and germanium, crucial components in semiconductor production, solar panels, and advanced military applications, are produced predominantly in China, which accounts for the bulk of the global supply. These materials are essential to industries ranging from consumer electronics to defence. Antimony, another restricted material, is used in products such as batteries, flame retardants, and night-vision equipment.
Response to U.S. Export Controls
The announcement follows the U.S. decision to add 140 Chinese and Chinese-affiliated companies to its “entity list,” subjecting them to strict export controls on semiconductor technology. Both countries have cited national security concerns as justification for their trade restrictions, underscoring growing competition in the tech sector.
China’s Foreign Ministry has strongly objected to the U.S. measures, accusing Washington of disrupting global supply chains and violating principles of fair competition. Industry associations in China have also voiced concerns, warning of increased costs for American companies and disruptions in international trade flows.
Economic and Industry Impact
The new restrictions are expected to further strain supply chains and increase prices for the affected minerals. According to the U.S. Geological Survey, the U.S. relies on China for approximately half its supply of gallium and germanium. While domestic deposits of these minerals exist in the U.S., they remain largely untapped, though some efforts are underway to explore their extraction.
The price of restricted materials, such as antimony, has surged significantly, doubling to over $25,000 per ton in 2024. Prices for gallium, germanium, and graphite have also risen, reflecting the market’s reaction to tightened supply and heightened geopolitical uncertainty.
Future Implications
China’s latest export restrictions signal a more assertive stance in the ongoing technology and trade disputes with the U.S. While both governments cite national security as a basis for their actions, the measures have implications for global trade stability, industry supply chains, and the competitive landscape in critical technologies.
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