China has announced a ban on exports to the United States of gallium, germanium, and other critical high-tech materials that have potential military applications

On Tuesday, China announced it would be banning exports of gallium, germanium, antimony, and other key high-tech materials with potential military applications to the United States, a move in retaliation against the U.S. limits on semiconductor-related exports.

The Chinese Commerce Ministry made the announcement after Washington expanded its list of Chinese companies subject to export controls related to computer chip-making equipment, software, and high-bandwidth memory chips, which are essential for advanced applications.

This escalation in trade restrictions comes amid President-elect Donald Trump’s threats to sharply increase tariffs on imports from China and other countries, heightening existing tensions over trade and technology.

China’s Foreign Ministry also issued a strong condemnation of the U.S. actions.

“China has lodged stern protests with the U.S. regarding its updated semiconductor export control measures, sanctions against Chinese companies, and malicious suppression of China’s technological progress," stated Lin Jian, a spokesperson for China’s Foreign Ministry, during a routine briefing on Tuesday.

“I want to reiterate that China firmly opposes the U.S. overstretching the concept of national security, the abuse of export control measures, and the illegal unilateral sanctions and long-arm jurisdiction against Chinese companies,” Lin added.

In July 2023, China announced it would require exporters to apply for licenses to send critical materials such as gallium and germanium to the U.S. By August, the Chinese Commerce Ministry had also introduced export restrictions on antimony, which is used in products ranging from batteries to weapons, and tightened controls on graphite exports.

These materials are considered vital for national security. China is a major producer of antimony, which is used in various applications, including flame retardants, batteries, night-vision goggles, and nuclear weapons production, according to a 2021 report by the U.S. International Trade Commission.

The new restrictions also cover the export of super-hard materials like diamonds and other synthetic materials, which are used in numerous industrial applications, including cutting tools, disc brakes, and protective coatings. Additionally, licensing requirements that China introduced in August cover smelting and separation technology and machinery related to such super-hard materials.

As the world’s largest producer of gallium and germanium, China controls the global supply of these materials, which, despite being produced in small quantities, are crucial for making computer chips for mobile phones, cars, solar panels, and military technology.

After the U.S. announced it was adding 140 companies to an “entity list” subject to stringent export controls, China’s Commerce Ministry responded by vowing to take actions to protect its "rights and interests." Almost all of the companies affected by the new U.S. trade restrictions are based in China, though some are Chinese-owned businesses operating in Japan, South Korea, and Singapore.

Both governments maintain that their export controls are necessary for national security.

China’s government has expressed frustration over U.S. restrictions on access to advanced processor chips and other technologies on security grounds, but it had been cautious in retaliating, likely to avoid disrupting China’s emerging chip development and artificial intelligence sectors.

Various Chinese industry associations also issued statements protesting the U.S. move to limit access to advanced chip-making technology.

The China Association of Automobile Manufacturers criticized the use of national security as justification for export controls, calling it an “abuse of export control measures” and accusing the U.S. of a “malicious blockade and suppression of China.”

“Such behavior seriously violates the laws of the market economy and the principle of fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain, and ultimately harms the interests of all countries,” the association stated.

The China Semiconductor Industry Association issued a similar statement, asserting that these restrictions are disrupting supply chains and inflating costs for American companies.

“U.S. chip products are no longer safe and reliable. China’s related industries will have to be cautious in purchasing U.S. chips,” the association said.

The U.S. imports about half of its gallium and germanium supply directly from China, according to the U.S. Geological Survey. In 2022, China exported around 23 metric tons (25 tons) of gallium and produces roughly 600 metric tons (660 tons) of germanium annually.

Although the U.S. has deposits of these minerals, it has not been actively mining them, though some projects are underway to explore ways to tap into these resources.

The export restrictions have caused mixed reactions in terms of market prices. The price of antimony has more than doubled this year to over $25,000 per ton, and prices for gallium, germanium, and graphite have generally risen as well.