China bans export of critical minerals to US as trade tensions...

China bans export of critical minerals to US as trade tensions escalate

A Chinese Commerce Ministry directive on dual-use items with both military and civilian applications cited national security concerns.

The order, which takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the U.S."In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," the ministry said.Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables and solar cells. Antimony is used in bullets and other weaponry, while graphite is the largest component by volume of electric vehicle batteries.

The move has sparked fresh concern that Beijing could next target other critical minerals, including those with even broader usage such as nickel or cobalt."China has been signalling for some time that it's willing to take these steps, so when is the U.S. going to learn its lesson?" said Todd Malan of Talon Metals (TLO.TO), opens new tab, which is trying to develop a nickel mine in Minnesota and is exploring for the metal in Michigan. The only U.S. nickel mine will be depleted by 2028.

The United States was assessing the new restrictions, but will take "necessary steps" in response, a White House spokesperson said, without giving details.

https://www.reuters.com/markets/commodities/china-bans-exports-gallium-germanium-antimony-us-2024-12-03/