In a bold move that is expected to escalate trade tensions with the United States, China has announced a ban on critical mineral exports to the U.S. The export ban covers the three minerals: gallium, germanium, and antimony.

These materials are essential for a wide range of high-tech and strategic industries, including semiconductors, renewable energy, and military applications.

China dominates the global production of the banned minerals, accounting for approximately 98% of gallium and 60% of germanium output. Both materials play a pivotal role in advanced manufacturing:

The Chinese Ministry of Commerce justified the ban based on national security concerns.

This decision follows the U.S. government’s recent tightening of export controls targeting China’s semiconductor industry. These controls included the addition of 140 Chinese companies to a trade blacklist and restricting their access to advanced chipmaking technologies.

The United States, which has historically relied on Chinese imports for these materials, now faces a significant challenge in securing alternative supplies.

This critical mineral exports ban could lead to shortages and price spikes, which would have downstream effects on the global technology and defense sectors.