China announced Tuesday a ban on exporting certain minerals and metals to the U.S., escalating the ongoing trade and tech war. The targeted materials—germanium, gallium, antimony, and superhard substances—are vital for manufacturing semiconductors, batteries, and military hardware. The restrictions, reported by the Financial Times, come as a direct response to new U.S. trade measures aimed at curbing China’s access to advanced semiconductor technology.
The affected materials, like germanium and gallium, are essential for advanced technology. According to the U.S. Geological Survey, a complete Chinese export ban on these minerals could cost the U.S. economy $3.4 billion in gross domestic product, highlighting China’s dominance in global resource supply chains.
China’s Ministry of Commerce stated it would tighten controls on these “dual-use” items, citing national security. Additional restrictions on graphite exports, crucial for battery production, were also announced. Beijing accused the U.S. of weaponizing trade policy, criticizing recent decisions by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) to limit China’s semiconductor production capabilities. The BIS added 140 Chinese companies to its restricted trade list on Monday.
China’s restrictions on critical minerals also intersect with global trade tensions. Canadian Prime Minister Justin Trudeau recently met with Trump following threats of a 25% tariff on Canadian and Mexican imports. Mexico’s President Claudia Sheinbaum has vowed to retaliate if such tariffs are implemented.
This development intensifies the economic standoff as President-elect Donald Trump prepares to take office. Trump has pledged to impose significant tariffs on Chinese imports, with the stated goal of pressuring Beijing to curtail the trafficking of chemicals used in fentanyl production. On Monday, he announced plans for a 10% tariff on Chinese goods, a move criticized by China as ineffective in addressing U.S. challenges.
In August, China signaled its intent to restrict antimony exports, another critical mineral for weapons manufacturing, further escalating the competition for strategic resources.