On Tuesday (December 3rd), the Chinese Ministry of Commerce issued an announcement prohibiting the export of minerals such as indium, germanium, and antimony to the United States due to potential military use. This comes a day after the United States implemented its latest crackdown on the semiconductor industry in mainland China.
The Ministry of Commerce of the Communist Party of China stated in the announcement that the ban on so-called “dual-use” items for national security reasons is immediately effective. It also called for stricter scrutiny of the final use of graphite being shipped to the United States.
“In principle, indium, germanium, antimony, and superhard materials shall not be exported to the United States,” the announcement stated.
This latest escalation in tensions between the United States and China comes before the inauguration of President-elect Trump (Donald Trump) and his administration.
However, according to data from Chinese customs, as of October this year, no refined or unrefined indium or germanium has been shipped from mainland China to the United States, despite the U.S. being the fourth and fifth largest markets for these minerals respectively during the same period last year.
These minerals are used in semiconductors, with germanium also being utilized in infrared technology, fiber optics, and solar panels.
Meanwhile, following the implementation of measures restricting the export of antimony ore in Beijing, China’s total antimony product exports in October plummeted by 97% compared to September.
Antimony ore is mainly used in ammunition, infrared missiles, nuclear weapons, night vision goggles, as well as batteries and optoelectronic equipment. China accounted for 48% of global antimony ore production last year.
According to data from the information company Project Blue, China’s refined germanium production accounts for 59.2% of the global total, while refined indium production accounts for 98.8%.
Jack Bedder, co-founder of Project Blue, stated that the Communist Party’s move has intensified tensions in the supply chain, noting that “raw material supply in Western countries is already quite tight.”
Data from information supplier Argus shows that the price of antimony trioxide in Rotterdam has soared by 228% since the beginning of the year, reaching $39,000 per metric ton as of November 28th.
On the day before China announced this ban, on December 2nd, the United States targeted the Chinese semiconductor industry for the third time in three years, placing 140 Chinese companies, including the Northern Huacoo Technology Group Co., Ltd., on an entity list.
Recent statements by Trump indicate plans to impose a 10% tariff on Chinese goods after taking office. During his campaign, he had announced intentions to levy a 60% tariff on imports from China.