Beijing bans critical mineral exports to US
China has taken off the gloves with the US.
On Tuesday, Beijing announced a ban on exports to the US of certain dual-use critical minerals and materials, effective immediately.
- The move followed Washington’s announcement of a third round of chip export controls targeting China just a day earlier.
According to a commerce ministry (MofCom) notice:
- Gallium, germanium, antimony, and superhard material exports are “in principle” not permitted
- Graphite exports are now subject to stricter end-use reviews
Some context: In August 2023, Beijing started requiring that exports of gallium and germanium, key metals for high-tech manufacturing, receive regulatory approval.
- Regulators followed with similar controls on graphite (effective December 2023) and antimony (effective September 2024).
More context: China’s export control system is relatively new, with the cornerstone Export Control Law passed in 2020.
- The latest regulations under the system, effective December 1, expanded Beijing’s ability to enforce export bans and control re-exports of dual-use items.
Get smart: The outright bans mark a significant escalation from the previously onerous but navigable licensing requirements.
- The US, heavily reliant on imports of these materials from China, will face worsening supply chain disruptions and rising costs.
- Gallium will be the hardest to source elsewhere, given China’s dominance in global production.
What we're wondering: Did the recent US measures cross a line – or did they hand Beijing the perfect opportunity to warn the incoming Trump administration of the consequences of ramping up economic and trade pressure on China?