Last week, Trump's trade chief announced the possibility of revoking China's trade privileges. Now, China has responded by banning critical mineral exports, like antimony, gallium, and germanium to the US.
The minerals in question are widely used in thousands of military and technological applications, including semiconductors, infrared technology, and batteries. To explain their decision, the Commerce Ministry of China said it was imposing stricter regulations due to national security concerns.
According to Reuters, this move comes after Washington recently cracked down on China's semiconductor industry, including export restrictions on 140 Chinese companies.
This prohibition also hits global supply chains particularly hard, mainly in the US as they depend on China to import these key materials. China produces 98.8% of the world's refined gallium and 59.2% of refined germanium. Even the use of antimony, used abundantly in defense technologies and renewable energy, saw its exports shrink considerably that brought about an increase in its prices.
For instance, the price of antimony trioxide has skyrocketed by 228% this year, reaching $39,000 per metric ton. Experts warn that this move will intensify efforts of not just the US, but other affected countries, to scramble for alternative sources, forcing countries to explore new mining opportunities.
Read More: Trump's Trade Chief May Revoke China's Trade Privileges With Stricter Export and Investment Controls
China's Export Restrictions to US
China's latest restrictions are not new but reinforce limits introduced last year, per Al Jazeera. However, this time, it is focused on the US, bringing to the fore the geopolitical stakes. While the US has already witnessed reduced imports of these materials in 2024, the ban adds another layer of struggle for the country to secure critical supplies for its tech and defense industries.
The back drop to this is President-elect Donald Trump's incoming administration that, as is known, has promised to once again impose tariffs on Chinese goods. This is sure to place a damper on the trade between the two nations, where national security and economic sovereignty have both become paramount concerns.
Ultimately, experts believe China's export ban reveals the increasing weaponization of trade in global geopolitics. It has serious questions to ask about supply chain resilience and the future of US-China economic relations. For now, it seems both countries are dug in and comfortable with a tit-for-tat strategy with no resolution in sight.
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