China freezes exports of key minerals to US as trade row grows even before Trump's second term

China announced on Tuesday a ban on the export of many minerals used for military and technical purposes to the US, one day after the Biden administration also restricted its exports as part of a crackdown on China's semiconductor industry.

The Chinese ban applies to the minerals antimony, gallium and germanium. It also restricts the export of graphite. Minerals are used in a variety of materials including semiconductors, infrared technology, fiber optic cables, ammunition and electric vehicle batteries.

“These new controls only emphasize the importance of strengthening our efforts with other countries to destabilize and isolate the PRC's (China) critical supply chains,” a White House spokesman was quoted as saying by Reuters news agency.

“In fact, the export of gallium, germanium, antimony, and other heavy building materials to the United States will not be allowed,” China's Ministry of Commerce said in its order.

According to Consultancy Project Blue, China accounted for 98.8% of refined gallium production and 59.2% of refined germanium production this year. Last year, it accounted for 48% of the world's mined antimony, which is used in things including nuclear weapons, ammunition and batteries.

“This move is a major escalation of tensions in supply chains where access to raw materials is already tight in the West,” Project Blue founder Jack Bedder told Reuters.

China issued the new law two days after the US banned exports to 140 companies in China's semiconductor industry. The US crackdown – the third in three years – was aimed at disrupting China's ability to advance intelligence technology for military applications.

The escalating economic measures by Washington and Beijing come just weeks before President-elect Donald Trump is sworn in for a second term. During his first term, Trump has launched a trade war with Chinaand threatened to escalate tensions again with a new 10% tariff on all imports from China once he returns to office.

“It is not surprising that China has responded to the increasing restrictions of the US authorities, current and imminent, with its restrictions on the supply of these minerals,” said Peter Arkell, chairman of the Global Mining Association of China, told Reuters. “It's a trade war with no winners.”