China bans export of critical minerals to US

China on Tuesday banned exports to the United States of the critical minerals gallium, germanium and antimony that have potential military applications, escalating trade tensions the day after Washington's latest crackdown on China's chip sector.

A Commerce Ministry directive on dual-use items with both military and civilian applications cited national security concerns. The order, which takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the US. Graphite is a component of EV batteries.

"In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," the ministry said. The curbs strengthen enforcement of existing limits on exports of the critical minerals that Beijing began rolling out last year, but apply only to the US market, in the latest escalation of trade tensions between the world's two largest economies ahead of President-elect Donald Trump taking office.

The United States was assessing the new restrictions, but will take "necessary steps" in response, a White House spokesperson said, without giving details. "These new controls only underscore the importance of strengthening our efforts with other countries to de-risk and diversify critical supply chains away from PRC (China)," the spokesperson said.