Trade War of Superlatives: China Halts Export of Critical Materials

China has announced a ban on the export of materials with potential military applications, including gallium, germanium, antimony, and superhard materials, to the United States. This comes just one day after Washington's latest sanctions against the Chinese semiconductor sector. The Chinese Ministry of Commerce emphasized that this measure is intended to protect the national security and interests of the country. In addition to these restrictions, the end-use of graphite products delivered to the United States will also be more closely scrutinized. The new regulation for these so-called dual-use goods took effect immediately. A ministry spokesperson stated that the exports of these materials are "fundamentally not allowed." With these restrictions, Beijing is tightening the already existing export limits on critical raw materials that have been gradually introduced since last year. Particularly, the relations with the United States are coming under further pressure as the designated President Donald Trump is about to take office. Interestingly, Chinese exports of processed and unprocessed germanium or gallium to the United States recorded no significant quantities by October this year, although the country previously played a significant role in the global market. While gallium and germanium play a central role in semiconductor manufacturing and are also used in infrared technologies, fiber optic cables, and solar cells, the deliveries of antimony in October experienced a dramatic decline of 97% compared to September. These developments are the latest in a series of trade restrictions between the world's largest economies. They follow the efforts of the United States to keep the Chinese semiconductor industry under control by regulating exports to 140 companies, including the chip equipment manufacturer Naura Technology Group.