BEIJING: China’s export controls on three metals important across the defence and chip sectors are keeping shipments at historically low levels despite high prices worldwide as Beijing flexes its control over the minerals supply chain.
China is the world’s largest producer of antimony, germanium and gallium, which have niche but vital roles in clean energy, chipmaking and defence. Since 2023, Beijing has gradually added the metals to its export controls list. In December it banned exports to the US.
For any item on the control list, exporters must apply for licenses, an opaque process which allows Beijing to exert the dominance it has built for years over the mining and processing of important minerals.
Fresh customs data released on Sunday (Apr 20) reinforced a pattern building since controls were imposed: exports are down and some buyers, especially in Europe, are cut out of the supply chain.
Exports of antimony and germanium products in the first quarter were down 57 per cent and 39 per cent, respectively, compared to a year earlier.
March exports of gallium hit their lowest level since October 2023. Quarterly shipments were up on last year, but the current trend is still well below 2022, the last full year before curbs.
Minerals that are exported, in the case of antimony, are going to a smaller set of countries.
