Industry News
China Retaliates Against U.S. Export Controls by Blocking Crucial Minerals
TweetDec. 5, 2024
By:
Hannah B. Kreinik
The tit-for-tat economic restrictions between the United States and China continues. The most recent back and forth started with the United States blocking exports of equipment necessary to produce advanced-node integrated circuits and other U.S. technologies to China. In response, China imposed restrictions on exporting critical minerals to the U.S. You can read our chain of articles related to U.S.-China trade policies here, here, and here.

Specifically, China has moved to ban exports of minerals such as, gallium, antimony, germanium, has increased the export restrictions already in place against graphite, and banned dual-use items of the listed minerals to the U.S. All these minerals are essential to certain goods and U.S. military systems. Gallium is key for semiconductor manufacturing, LEDs, radar missile defense, and solar cell production. Antimony is used in plastics, synthetic rubber, and certain batteries. Germanium is used in the production of autonomous vehicles, renewable energy, and military technologies. Finally, graphite is a critical mineral used in electric vehicle batteries, of which the U.S. is keen to breakaway from Chinese battery dependance (see our article on the topic here). China has stated concerns of national security and international obligations to explain its latest actions against mineral exports to the U.S.
China’s retaliation should come as no surprise, as they have taken similar actions against the EU for the region’s increased tariffs against Chinese EV batteries (read about it here). Importers should check their semiconductor and similar technology supply chains for minerals originating from China as export controls increase between the parties and tariffs on derivative goods goes up. The Biden administration has already placed an increased tariff on Chinese EVs of 100%. It also seems apparent that Chinese-U.S. trade relations will continue to be stressed under the incoming Trump administration.
Barnes, Richardson & Colburn attorneys are here to help navigate the tempestuous waters of U.S.-China trade conflicts.