China has announced a ban on exporting critical raw materials such as gallium and germanium to the United States following heightened U.S. pressure on China’s chip industry. This move escalates tensions between the world’s two largest economies and risks further disruptions to global supply chains.
China’s Ministry of Commerce stated on Tuesday that it has tightened export controls on dual-use materials to the U.S., citing the need to “protect national security and interests.” The export of gallium, germanium, antimony, and other superhard materials to the U.S. is now prohibited in principle, according to the ministry’s statement.
This decision comes just hours after the Biden administration imposed its most extensive export controls yet, blacklisting 140 Chinese organizations, including prominent players in the country’s chip-making sector.
The restricted materials—gallium, germanium, antimony, and graphite—are considered “dual-use,” meaning they serve both civilian and military applications. These materials are critical for manufacturing semiconductors, electric vehicles, power systems, and other high-tech equipment.
The U.S. previously identified graphite and gallium as strategic materials in its 2021 supply chain review, highlighting the risks posed by their production being concentrated in China. Notably, China dominates global production of natural graphite, a key component in battery manufacturing.
China’s Ministry of Commerce also stated that no dual-use products would be exported for U.S. military purposes or to U.S. military organizations. This follows a detailed list published last month identifying materials such as tungsten, magnesium, and titanium as subject to strict export controls.
China’s latest restrictions are part of a broader response to what it perceives as the U.S. “weaponizing” export controls. A Ministry of Commerce spokesperson criticized the U.S. for violating international trade rules, harming bilateral interests, and destabilizing global supply chains. The spokesperson warned that any individual or organization violating these export rules would face legal consequences.
In a further sign of growing tension, major Chinese industry associations, including the China Association of Automobile Manufacturers and the China Internet Society, have urged members to exercise caution when procuring U.S. chips. These organizations described American chips as “no longer reliable or safe,” citing arbitrary changes to U.S. trade control measures that disrupt stable supply chains.
