How China’s ban on export of key minerals may be a problem for the US tech industry – Times of India

China has announced a ban on exports of key minerals to the US, which may hit the manufacturing in the country’s tech sector. The ban comes a day after the US announced export restrictions on 140 Chinese companies and stricter controls on chipmaking equipment.
According to a report by news agency Reuters, China is banning export of minerals like gallium, germanium, and others.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry said.

Why China’s ban on these minerals is significant

These minerals are critical components in various technologies, including semiconductors, infrared technology, fiber optic cables, solar cells, and even military applications like ammunition and nuclear weapons. Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables and solar cells.
The ban, effective immediately, targets “dual-use” items that have both military and civilian applications. It also requires stricter scrutiny of end-use for graphite exports to the US.
While China had already begun limiting exports of these minerals last year, this new ban specifically targets the US, essentially marking a significant escalation in trade tensions between the two economic giants.
Reuters report says that despite being a major consumer of these minerals in the past, the US has not imported any wrought or unwrought germanium or gallium from China this year.
Meanwhile, the incoming US administration has also signaled its intention to maintain a tough stance on China, with plans to implement additional tariffs on Chinese goods.