As you know, China controls a significant part of the world market for minerals used in the manufacture of electronics, if not through the right to extract them on its territory, then at least through processing. Therefore, in response to recent US sanctions in the field of semiconductor technology, the Chinese authorities have introduced additional restrictions on the export of a number of minerals.
As noted by Reuters, Chinese authorities have banned the supply of gallium, germanium and antimony compounds to the United States that can be used in the production of weapons systems. This became known from official representatives of the Ministry of Commerce of the People's Republic of China. Supplies of graphite from China to the US will be subject to additional controls, as this material can also be used in the military sphere.
According to a statement from the Chinese Ministry of Commerce, “in principle, the export of gallium, germanium, antimony and superhard materials to the United States will not be allowed”. Restrictions on the supply of these types of raw materials to the US from China have been in place since last year, but they at least allowed some degree of freedom. However, the current restrictions on the Chinese side only apply to direct shipments of minerals to the United States, although Chinese authorities also promise to monitor very closely the end-use of graphite sent for export.
In fact, shipments of germanium and gallium in one form or another from China to the United States have already ceased this year, although a year earlier the US was the fourth and fifth largest seller of these minerals to Chinese suppliers, respectively. Both minerals are used in the field of semiconductors, and germanium is also used to create night vision devices, fiber optic cables and solar panels. Antimony, in turn, is used in the manufacture of LCD displays, as part of solder and in some other areas. Since September, antimony exports from China have fallen by 97% since the restrictions were put in place.
Last year, China accounted for 48% of the world's production of antimony, which can also be used in the production of weapons systems. This year, China is already responsible for 59.2% of the supply of refined germanium and 98.8% of the supply of refined gallium in the world market. In fact, a complete ban on the supply of these chemical elements to the United States would be a serious blow to American industry. Antimony prices have more than tripled since the start of this year, and now some countries will try to establish their own production in the face of supply restrictions from China.