In response to Washington's newly announced semiconductor restrictions on China, Beijing retaliates with export controls on critical minerals like gallium and germanium.
The banned materials include the metals gallium, antimony, and germanium, according to a statement from China’s Commerce Ministry, which cited "national security" concerns. Additionally, exports of graphite, another essential component in semiconductors, will now face "stricter reviews of end-users and end-uses," the ministry said.
These measures build on existing restrictions on critical mineral exports that China began implementing last year but are now specifically targeting the U.S. market.
The Chinese government has announced stricter export controls on critical materials used in semiconductors and other high-tech industries, citing “national security” and international non-proliferation obligations. This move, seen as a direct response to recent U.S. restrictions, escalates trade tensions between the two nations.
The export ban targets gallium, germanium, and antimony—materials critical to semiconductor manufacturing, infrared technology, fiber optic cables, solar cells, and military weaponry such as bullets. Graphite, a key component in electric vehicle batteries, will also be subjected to tighter export reviews.
China dominates global production of these materials, accounting for 94% of gallium and 83% of germanium. Chinese customs data reveals that no shipments of gallium or germanium have been sent to the U.S. this year through October, down from a year prior when the U.S. was among the largest importers. Exports of antimony products also plummeted by 97% in October after China’s earlier export limits took effect.
This latest action comes a day after Washington imposed sweeping restrictions on chip technology, targeting 140 entities, including Chinese firms Piotech and SiCarrier. The U.S. measures aim to curb China’s access to advanced chip-making equipment, software, and components potentially usable in weapons systems and artificial intelligence.
In response, China criticized the U.S. for “politicizing and weaponizing economic, trade, and technological issues” while unveiling its own measures. The Chinese Ministry of Commerce emphasized that the restrictions would also limit the export of “dual-use items to U.S. military users or for military purposes.”
Experts view the move as a retaliatory measure by Beijing. Dylan Loh, assistant professor at Nanyang Technological University, noted that China’s actions highlight its ability to strike back in the ongoing chip war. However, supply chain impacts may remain limited in the short term as many manufacturers have stockpiled critical materials, according to Brady Wang of Counterpoint Research.
Meanwhile, Chinese trade associations are urging companies to reduce reliance on U.S. chips. The Internet Society of China called for expanded partnerships with non-U.S. suppliers and greater use of domestically produced chips. The China Association of Automobile Manufacturers also criticized the U.S. measures, stating they have “seriously affected the stable supply of U.S. chip products” and shaken the trust of Chinese automakers.
These escalating measures and countermeasures between the U.S. and China are likely to disrupt global supply chains and could drive inflationary pressures, warned Chong Ja Ian, a political science professor at the National University of Singapore.
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