China announces ban on rare minerals to US: What that means for you
FILE-Workers observe the production of electronic chips through an electronic display in Chongqing, China, on March 30, 2022. (Photo by Costfoto/NurPhoto via Getty Images)
China announced that it will ban exports to the U.S. of gallium, germanium, antimony, and other key high-tech materials with possible military applications.
The country is the biggest global source of gallium and germanium, which are produced in less amounts but are required to make computer chips for mobile phones, cars, and other products, as well as solar panels and military technology.
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China bans export of critical minerals to US
China on Tuesday banned exports to the United States of the critical minerals gallium, germanium and antimony that have widespread military applications, escalating trade tensions the day after Washington's latest crackdown on China's chip sector. The curbs strengthen enforcement of existing limits on critical minerals exports that Beijing began rolling out last year, but apply only to the U.S. market, in the latest escalation of trade tensions between the world's two largest economies ahead of President-elect Donald Trump taking office next month. Rich Nolan, President/CEO of the National Mining Association joined LiveNOW from FOX to discuss.
Citing the U.S. Geological Survey, the Associated Press noted that the U.S. receives roughly half its supply of both gallium and germanium metals directly from China. China exports roughly 25 tons of gallium in 2022 and produces about 660 tons of germanium per year.
These export limitations have had a mixed impact on prices for those minerals, with the price of antimony more than doubling in 2024 to more than $25,000 per ton. Prices for gallium, germanium and graphite also have increased.
According to the Associated Press, the Chinese Commerce Ministry said Tuesday the move comes after Washington, D.C. expanded its list of Chinese companies subject to export controls on computer chip-making equipment, software, and high-bandwidth memory chips. These specific chips are required for advanced applications.
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President-elect Donald Trump has threatened to raise tariffs on imports from China and other countries, possibly intensifying tensions over trade and technology.
The minerals sourced in China are used in computer chips, cars and other goods
In 2023, China said it would require exporters to apply for licenses to send to the U.S. the important materials like gallium and germanium.
However, in August 2024, the Chinese Commerce Ministry said it would limit exports of antimony, which is used in products like batteries and weapons, and enforce tighter controls on exports of graphite, the Associated Press reported.
These minerals are considered important for national security. China is a major producer of antimony, which is used in batteries, night-vision goggles and nuclear weapon production, according to AP, citing a 2021 U.S. International Trade Commission report.
China says it's protecting itself from US trade restrictions
After the U.S. side announced it was adding 140 companies to an "entity list" subject to strict export controls, China’s Commerce Ministry protested and said it would act to protect China’s "rights and interests."
The AP noted that almost all the companies impacted by Washington, D.C.’s latest trade restrictions are based in China, though some are Chinese-owned businesses in Japan, South Korea, and Singapore.
Meanwhile, China's government has been discouraged by U.S. limitations on access to advanced processor chips and other technology on security grounds but has been wary in retaliating, to avoid disrupting China’s developers of chips, artificial intelligence, and other technology.
Several Chinese industry associations issued statements protesting the U.S. move to limit access to advanced chip-making technology.