China retaliates by banning critical mineral exports to the US

China retaliates by banning critical mineral exports to the US

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04 December 2024

The most recent area of conflict between China and the United States is technology. Beijing retaliated by prohibiting the supply of vital minerals to the US, a day after the US tightened restrictions on selling chips and associated manufacturing equipment to China.

A new directive published by China's commerce ministry on Tuesday declared that "the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," according to Reuters. In addition to requiring exporters to exercise greater control over the final use of graphite supplied to the United States, the new rule is effective immediately.

Concerns about national security have been raised by the trade ministry in support of the prohibition on the US. There are both military and civilian uses for minerals that are illegal to export to the United States.

In the meantime, China is one of the largest producers and exporters of minerals like antimony, which are also utilised in the production of semiconductors. China was responsible for 48% of the world's antimony mining last year. Additionally, the substance is utilised in the production of infrared missiles, ammunition, and nuclear bombs.

Key mineral sales to the US were cut last year as part of China's strategic response to the White House chip ban. The Commerce Ministry's latest instruction makes it very evident that China is taking retaliatory action of its own.

As Donald Trump formally takes office, it is anticipated that the tech tensions between the US and China would worsen. A 60 percent tax on Chinese imports has already been promised by the newly elected US president. TikTok was deemed a danger to US national security during his previous term (2017–2021).

China is not, however, merely reacting passively to US activities. A proactive action that shows their willingness to lessen the impact of any ban, Chinese companies have been hoarding chips created in the United States in addition to the prohibition on exports of minerals.

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