China Escalates Trade War: Key Mineral Exports to U.S. Banned

Beijing Tightens the Screws: Strategic Minerals at the Heart of U.S.-China Trade Disputes

Editorial Team (ET)May 11, 2025

China has once again escalated trade tensions with the United States by banning the export of critical minerals gallium, germanium, and antimony, citing national security concerns. The move follows Washington's latest measures targeting China's semiconductor industry, marking a significant step in the ongoing trade battle between the world’s two largest economies.

Why These Minerals Matter

Gallium and Germanium: The Backbone of Advanced Technology Gallium and germanium are indispensable in cutting-edge technology. Gallium is used in semiconductors and LEDs, while germanium is critical for infrared technology, fiber optic cables, and solar cells. These materials are vital to industries ranging from telecommunications to defense.

Antimony: A Military and Industrial Essential Antimony has versatile applications in ammunition, infrared missile systems, and night-vision technology, making it a critical component for national defense. Its utility extends to batteries and photovoltaic equipment, underscoring its role in the global energy transition.

China’s Stranglehold on Mineral Supplies

China’s dominance in these markets is unmatched. According to consultancy Project Blue, China accounts for 98.8% of global refined gallium production and 59.2% of refined germanium output. Its control over 48% of the world's mined antimony further cements its strategic leverage.

China’s latest directive reinforces earlier export limits, specifically targeting the U.S. The ban takes immediate effect, with strict reviews for other dual-use items like graphite. The move aims to counteract Washington’s restrictions on Chinese chipmakers.

China’s actions are likely to exacerbate supply chain disruptions. The scarcity of these minerals could lead to soaring prices and scramble Western industries to secure alternative sources.

The impact is already evident. Antimony trioxide prices in Rotterdam have surged by 228% since the beginning of the year, reaching $39,000 per metric ton.

Washington’s Semiconductor Crackdown: The Catalyst

Just a day before China’s announcement, the U.S. imposed its third set of restrictions in three years on China’s semiconductor sector. The latest crackdown targets 140 entities, including chip equipment maker Naura Technology Group.

By limiting China’s access to advanced technology, Washington aims to curb Beijing's military and technological advancements. However, this has invited a strong retaliatory response, deepening the trade rift.

A Trade War with No Winners

Peter Arkell, chairman of the Global Mining Association of China, succinctly summarized the situation: “It’s a trade war that has no winners.” Both nations are doubling down on protectionist measures, with long-term consequences for global industries.

Chinese industry groups have called for a boycott of U.S. semiconductors, questioning their reliability. This underscores the deepening mistrust between the two nations.

The Global Race to Secure Minerals

Countries worldwide are now racing to identify alternative sources of these minerals. “Everyone will dig in their backyard to find antimony,” noted a minor metals trader in Europe.

Nations rich in these minerals, such as Canada and Australia, may benefit from the vacuum created by China’s restrictions. Investments in mining and refining could shift focus to these regions.

China’s move adds complexity to its relationships with other trading partners. While the ban targets the U.S., ripple effects may strain ties with European allies reliant on these materials.

The battle over critical resources mirrors Cold War-era power struggles, with both nations weaponizing trade to assert dominance.

Conclusion: A New Era of Resource Nationalism

China’s ban on exporting gallium, germanium, and antimony to the U.S. marks a turning point in global trade dynamics. As the world grapples with the fallout, the race to secure these critical minerals is on. The escalating trade war highlights the fragility of interconnected supply chains and the pressing need for resource diversification.

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