The Chinese government has banned the export of critical minerals to the US that are crucial for semiconductors, military equipment and other industries. The critical elements include gallium, germanium, antimony and ‘superhard materials’ such as diamond, cubic boron nitride and other related materials.
The 3 December announcement by China’s Ministry of Commerce appears to be in response to new US restrictions on exports of certain semiconductor equipment to China, which were announced by the US Commerce Department the previous day.
Gallium and germanium have unique properties that make them important components in semiconductors and essential for manufacturing various other modern technologies. Antimony – a metalloid – is mostly used in flame retardants and lead-acid batteries, but also for various military applications like night vision goggles, explosives, nuclear weapons production and infrared sensors, according to the US International Trade Commission. China produces 98% of the world’s gallium.
In its announcement, China also stated that when it comes to exporting other so-called ‘dual-use items’, which can have military as well as civilian uses, such as graphite, a ‘stricter end-user and end-use review’ will be implemented.
‘China has lodged serious protests with the US for once again updating the export controls on semiconductors and sanctioning Chinese companies, and maliciously suppressing China’s technology progress,’ Chinese foreign ministry spokesperson Lin Jian stated during a press conference on 3 December. ‘Such practices gravely disrupt the international economic and trade order, destabilise global industrial and supply chains, and harm the interests of all countries.’
Recent analysis by the US Geological Survey (USGS) estimated that there could be a $3.4 billion (£2.7 billion) decrease in US GDP if China implements a total ban on exports of gallium and germanium. ‘Losing access to critical minerals that make up a fraction of the value of products like semiconductors and LEDs can add up to billions of dollars in losses across the economy,’ warned Nedal Nassar, who heads minerals intelligence research at the USGS and was the report’s lead author.
US president-elect Donald Trump, who assumes the White House helm on 20 January, has announced plans to levy an additional 10% tariff on goods coming into the US from China.
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