China has escalated its trade tensions with the United States by imposing a ban on the export of three key minerals – gallium, germanium, and antimony. This move is seen as a direct retaliation against trade restrictions imposed by the US. The ban, which came into effect immediately, has significant implications for industries that rely on these minerals for the production of semiconductors, military equipment, and advanced technology.
The Chinese Commerce Ministry justified the export ban by stating that it is necessary to protect national security, as these minerals are used for both military and civilian purposes. China currently dominates the market for germanium and gallium, producing 59.2% and 98.8% of the world’s supply, respectively. The ban on these critical materials has already caused disruptions in global markets, with antimony prices surging by 228% in 2024 to $39,000 per metric ton.
The impact of China’s export ban on US materials has prompted the US to seek alternative sourcing options. The US is collaborating with the EU and other countries in the Minerals Security Partnership to diversify its supply chain. Domestically, the US is ramping up efforts to mine antimony in Idaho and explore mineral deposits in states like Wyoming, Montana, and Nevada.
The ongoing trade tensions between China and the US have raised concerns about the future outlook of the global economy. President-elect Trump has indicated his intention to impose tariffs on Chinese goods, with the possibility of increasing them up to 60%. Experts warn that the trade war between the two countries has no winners and could lead to further restrictions on critical materials.
Looking ahead, experts believe that China’s export ban may extend to other materials such as tungsten, magnesium, and aluminum alloys. This could further strain US access to key minerals and disrupt supply chains in various industries. The ban on US material exports by China underscores the need for countries to diversify their sourcing strategies and reduce reliance on a single supplier.