China announced on Tuesday it would ban the export of key rare minerals to the United States, marking a significant escalation in the ongoing technology trade dispute between the two global powers.
The decision follows the Biden administration’s recent move to tighten restrictions on China’s access to advanced American technology, including semiconductors and related equipment.
China’s Ministry of Commerce cited national security concerns in its decision to halt sales of critical materials such as gallium, germanium, antimony, and graphite. These materials are essential for manufacturing semiconductors and have military applications, including use in ammunition. The ban, effective immediately, will subject the export of graphite-related products to stricter review processes.
The Chinese government framed the move as a response to the US’s expanded export controls, which it called “illegal.” Lin Jian, spokesperson for China’s Ministry of Foreign Affairs, condemned the US measures, stating:
“Such practices seriously undermine the international economic and trade order, disrupt global supply chain stability, and harm the interests of all countries.”
The Biden administration’s latest actions, announced Monday, included prohibitions on the sale of certain types of chips and manufacturing equipment to China, as well as adding more than 100 Chinese companies to a restricted-trade list. This marks the third major US effort in recent years to limit China’s progress in cutting-edge technology.
China’s control over rare minerals is critical, as it dominates the global supply of these materials, which are indispensable for advanced technologies. In recent months, Beijing has tightened regulations on how these minerals are used in Western supply chains, requiring exporters to provide detailed disclosures.
Industry analysts view the ban as a significant challenge for the US tech sector, particularly its semiconductor industry, which relies heavily on China’s rare minerals. While the US seeks to curb China’s technological advances, Beijing’s retaliation underscores the strategic importance of rare earth elements in the ongoing tech rivalry.
The Financial Times and the New York Times contributed to this report.
