China Blocks Exports of Germanium, Gallium, and Antimony for the US

China has blocked critical mineral exports to the US, escalating trade tensions and threatening key industries.

At a Glance

China has banned exports of gallium, germanium, and antimony to the US.
These materials are crucial for semiconductors, LEDs, and military applications.
The move is seen as retaliation against US restrictions on China’s chip industry.
China dominates global mining and processing of these rare earth materials.
The ban could significantly impact US technology and defense sectors.

China’s Strategic Export Ban

In a move that has sent shockwaves through the global technology and defense sectors, China has announced a ban on the export of critical materials including gallium, germanium, and antimony to the United States. This decision marks a significant escalation in the ongoing trade tensions between the two economic superpowers and threatens to disrupt key industries that rely on these rare earth elements.

The banned materials play crucial roles in the manufacturing of semiconductors, LEDs, solar cells, fiber optic cables, and various military applications. China’s dominance in the global mining and processing of these rare earth materials puts the United States in a vulnerable position, as it heavily relies on imports for its technological and defense needs.

China bans export of gallium, germanium and antimony to the US. https://t.co/zcTkYXiWOk

— MINING.COM (@mining) December 3, 2024

Retaliation and Escalating Tensions

This export ban is widely seen as a direct response to recent U.S. actions against China’s chip-making capabilities. The United States has been tightening export restrictions on semiconductor manufacturing equipment and expanding the list of Chinese companies subject to these controls. The move aims to impair China’s ability to produce advanced semiconductors with potential military applications.

“As containment (of China) intensifies, more U.S. industries, businesses and the entire economy will pay an increasingly heavy price,” the Global Times wrote back in November.

China’s actions extend beyond the export ban. The country has also blocked some government purchases from U.S. companies like Micron and has used its “unreliable entity list” (UEL) framework to probe U.S. firms operating in China. These measures, combined with slower customs clearance for U.S. companies, indicate a broader strategy to pressure American businesses.

Impact on U.S. Defense and Technology Sectors

The export ban on antimony is particularly concerning for the U.S. defense sector. Antimony is a critical metal used in the production of ammunition, steel, and various military applications. The United States, which once supplied 90% of its antimony needs, now relies heavily on imports, with China controlling a significant portion of the world’s reserves.

The restriction on antimony exports has already led to a surge in prices, with increases of over 200% reported. This price hike, coupled with supply constraints, could significantly impact U.S. military production capabilities, particularly in artillery shell manufacturing. The situation underscores the critical need for the United States to secure alternative supply chains for these strategic materials.

Seeking Alternatives and Future Implications

In response to the growing uncertainty surrounding the supply of critical minerals, some companies are taking proactive measures. Military Metals Corp., for instance, is acquiring antimony assets in North America and the European Union to reduce reliance on Chinese supply. The company has secured projects in Canada and Slovakia with significant historical reserves.

The ongoing geopolitical tensions between the United States and China highlight the strategic importance of securing supply chains for critical materials. As both nations continue to leverage their economic strengths in this trade conflict, the global technology and defense industries may face increasing challenges and uncertainties. The situation calls for a reevaluation of supply chain strategies and increased investment in domestic production capabilities to ensure long-term stability and security.