China announced on Tuesday (Dec 3) that it has banned exports of some rare minerals to the United States, marking the latest escalation of trade tensions between the world’s two largest economies. The development comes a day after President Joe Biden’s administration banned certain types of chips and machinery and added more than 100 Chinese companies to a restricted business list.
China’s move is also seen as a new way to counter President-elect Donald Trump, who takes office on January 20. On November 25, he threatened to impose an “extra” 10% on imports of Chinese goods into the US. .
Which rare minerals are restricted?
China has banned the export of three major rare minerals gallium, germanium and antimony. Gallium (atomic number 31) is a soft, silvery-white metal, similar to aluminum, with a melting point above room temperature. Germanium (atomic number 32) is a gray-white metalloid (metal) that is brittle. Antimony (atomic number 51) is a hard, brittle, silvery metal.
What is the importance of restricted rare minerals?
Gallium, germanium, and antimony occupy an important place in the world today because they are often used in computers, defense, and renewable energy technology. While germanium is important for low-carbon technologies such as solar cells, semiconductor wafers made using gallium arsenide instead of silicon can operate at higher frequencies and are heat resistant, according to Wafer World Inc., a leading US company.
Semiconductors, also known as microchips or integrated circuits, are the ‘new oil’ because they are inside every essential product these days – from household appliances to sophisticated defense systems, mobile phones to cars, toys to high-end luxury products.
Furthermore, germanium is also used in infrared technology, fiber optic cables and solar cells. Antimony is used in bullets and other weapons, according to a Reuters report.
Why has China banned these rare minerals?
In a statement released on Monday, China has banned gallium, germanium and antimony exports to the US. National security concerns.
However, experts believe that the ban is not only a recent ban by the Biden administration but also a counter to Trump’s plan to curb the dominance of Chinese goods in the US.
China produces almost all of the world’s supply of critical minerals needed to make advanced technologies, including semiconductors – it produces 60% of the world’s germanium and 80% of its gallium. Therefore, it is now using the export ban to hit the US.
But it is also possible that these measures could backfire for China. For example, “After China temporarily halted exports to Japan in 2010, the Japanese government helped Linas, an Australian company, develop a large rare earth metal mine there as an alternative supplier,” according to a New York Times report.