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China prohibits export of essential minerals to U.S. as trade frictions escalate

China has banned exports to the U.S. of products connected to the minerals gallium, germanium and antimony that have possible military applications, its commerce ministry stated on Tuesday, a day after Washington's newest crackdown on China's chip sector.

Beijing's regulation on so-called dual-use products with both military and civilian usage, which points out national security issues and takes immediate impact, also requires stricter review of end-usage for graphite products delivered to the U.S.

In principle, the export of gallium, germanium, antimony, and superhard products to the United States will not be permitted, the ministry stated.

The curbs reinforce enforcement of existing limits on exports of the important minerals that Beijing started rolling out in 2015, but apply just to the U.S., in the latest escalation of trade stress in between the world's 2 biggest economies ahead of President-elect Donald Trump taking workplace.

Nevertheless, there have been no Chinese deliveries of wrought and unwrought germanium or gallium to the U.S. this year through October, although it was the 4th and fifth-largest market for the minerals, respectively, a year earlier, Chinese custom-mades data show.

Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cable televisions and solar cells.

Likewise, China's overall October shipments of antimony items plunged by 97% from September after Beijing's relocate to restrict its exports worked.

China accounted last year for 48% of internationally mined antimony, which is utilized in ammo, infrared missiles, nuclear weapons and night vision safety glasses, as well as in batteries and photovoltaic devices.

This year, China has represented 59.2% of improved germanium output and 98.8% of refined gallium production, according to consultancy Job Blue.

The relocation is a substantial escalation of tensions in supply chains where access to raw material systems is currently tight in the West, said Project Blue co-founder Jack Bedder.

Rates of antimony trioxide in Rotterdam had actually skyrocketed by 228%. considering that the start of the year to $39,000 a metric ton on Nov. 28, data from info supplier Argus showed.

Everyone will dig in their backyard to find antimony. Numerous. countries will try to find antimony deposits, said a minor. metals trader in Europe, decreasing to be called.

China's announcement follows the U.S. released its third. crackdown in 3 years on China's semiconductor market on. Monday, curbing exports to 140 companies, including chip. devices maker Naura Innovation Group.

Trump, whose first White Home term was marked by a bitter. trade war with China, has actually said he will carry out 10% tariffs on. Chinese items and threatened 60% tariffs on Chinese imports. during his governmental project.

(source: Reuters)