China Bans Export of Critical Minerals to US Amid Escalating Trade Tensions

China imposes ban on critical mineral exports to the US. US evaluates response to China's export restrictions. Concerns rise over impact on global supply chains and mineral prices.

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These minerals have significant military applications, prompting China to strengthen enforcement of existing export limits, specifically targeting the US market. The directive, effective immediately, cited national security concerns and also imposed stricter reviews on graphite items destined for the US.

Gallium and germanium are crucial components in semiconductors and infrared technology, while antimony is used in weaponry. Graphite, a key component in electric vehicle batteries, is also subject to these export restrictions. This move has raised concerns that China may extend these restrictions to other critical minerals like nickel or cobalt.

The US is evaluating these new restrictions and plans to take necessary steps in response. The White House spokesperson highlighted the importance of diversifying critical supply chains away from China. Meanwhile, Chinese customs data revealed a significant drop in shipments of germanium, gallium, and antimony products to the US following the implementation of these export restrictions.

The ban on critical mineral exports to the US marks a significant escalation in the ongoing trade tensions between the two economic powerhouses. Prices of antimony trioxide have surged, prompting countries to seek alternative sources for these minerals. Companies like Perpetua Resources and United States Antimony are already strategizing to mitigate the impact of China's export ban on critical minerals.

China's latest move comes on the heels of Washington's crackdown on China's semiconductor industry, further exacerbating the trade war dynamics between the two nations. The Global Mining Association of China has expressed concerns over the escalating trade war, emphasizing that it will have no winners in the end.

In response to the ban, Chinese industry groups are urging their members to source domestically made semiconductors, citing concerns over the safety and reliability of US chips.

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• China imposes ban on critical mineral exports to the US

• US evaluates response to China's export restrictions

• Concerns rise over impact on global supply chains and mineral prices

Source: REUTERS