China’s recent export bans on several critical minerals have dealt a significant blow to key American industries, highlighting the high stakes in the ongoing trade war between the world’s two largest economies. The move retaliates against Washington’s tightened controls designed to restrict China’s access to advanced semiconductor technologies.
The impact of these export bans has further raised concerns in Washington over the vulnerability of US industries reliant on Chinese minerals and the urgent need to secure alternative sources. Among the affected industries are semiconductors, space exploration, and manufacturing.
Semiconductors, crucial for high-frequency and high-power applications, rely heavily on gallium, which China accounts for 98% of global production. Without a reliable supply of this mineral, the US semiconductor industry faces significant disruptions, potentially slowing the development and production of advanced electronics.
China also dominates the production of germanium, essential for high-efficiency solar cells used in space-based applications. Disruptions to its supply threaten the reliability and deployment of vital systems like GPS, surveillance, and weather satellites critical for national security and infrastructure.
“Superhard materials,” such as synthetic diamonds and cubic boron nitride, are also essential for cutting, grinding, and shaping metals, ceramics, and composites with extreme precision. These materials are used in aerospace, automotive, and industrial manufacturing, accounting for 10% of the US GDP in 2023.
The economic impact of these export bans is significant, with a full ban on gallium potentially reducing US GDP by as much as $3.1 billion. The US Geological Survey (USGS) is working to strengthen the supply of critical minerals by exploring mineral resources in the United States.
Source: https://www.newsweek.com/us-industries-china-news-mineral-export-controls-1998251