As you know, the PRC controls a significant part of the world market for minerals used in the production of electronics, if not by 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 technologies, the Chinese authorities have introduced additional restrictions on the export of a number of minerals.
Image source: Micron Technology
As Reuters notes, Chinese authorities have banned the supply of gallium, germanium and antimony compounds to the United States, which 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. Graphite supplies from China to the United States will be subject to additional control, since 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 permitted.” Restrictions on the supply of these types of raw materials to the United States from China have existed since last year, but they at least allowed some degree of freedom. However, the current restrictions on the Chinese side apply only to direct supplies of minerals to the United States, although the Chinese authorities also promise to monitor the final use of graphite shipped for export very closely.
In fact, supplies of germanium and gallium in one form or another from China to the United States have already ceased this year, although a year earlier this region was in fourth and fifth place in sales of these minerals, respectively, for Chinese suppliers. Both minerals are used in the semiconductor field, and germanium is also used to create night vision devices, fiber optic cables and solar panels. Antimony, in turn, is used in the production of LCD displays, as part of solder, and in some other areas. Since September, antimony exports from China have fallen by 97% after restrictions were introduced.
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 was responsible for 59.2% of the refined germanium supply and 98.8% of the refined gallium supply to 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 beginning of this year, and now some countries will try to establish their own production in the face of supply restrictions from China.