The USA and other countries obtain the raw materials gallium, antimony and germanium almost exclusively from China. The People’s Republic banned the export of the three metals to the USA in December 2024. The restrictions applied to so-called dual-use goods, which can be used for both military and civilian purposes.
In a statement, the Ministry of Commerce in Beijing also announced the easing of export restrictions for graphite products, which previously also fell under the controls for dual-use goods.
US President Donald Trump has imposed tariffs on almost all US trading partners since returning to the White House in January. The trade dispute with China in particular escalated from April onwards – in the meantime it led to three-digit tariff surcharges on mutual imports. The tariff dispute between the world’s two largest economies caused great unrest on the markets.
In April, Beijing also cut exports of tungsten and seven other rare earths in response to high tariffs imposed by US President Donald Trump. China also dominates the world market for rare earths. More than 60 percent of the extraction of raw materials takes place there.
Beijing openly used the important raw materials as a means of pressure in the trade dispute with the USA. However, there was a rapprochement in May: both sides reduced the April tariffs to ten percent and agreed to further negotiations.
In late October, Xi and Trump met on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea and agreed on a number of points. As a result, both sides extended the reduction in mutual punitive tariffs to ten percent by one year and agreed to further negotiations.
Gallium, antimony and germanium are not rare earth elements, but they are essential for many sectors of the economy. According to a 2024 EU report, China produces 94 percent of the world’s gallium. The metal is used in integrated circuits, LED lights and photovoltaic modules, among other things.
Antimony is used in both battery technology and the defense industry to reinforce armor coatings and ammunition. China accounts for 83 percent of the production of germanium, which is indispensable for fiber optic technology, among other things.
