China on Tuesday (December 3) announced that it would ban the export of some of the rare minerals to the United States, marking the latest escalation of trade tensions between two of the biggest economies in the world. The development came a day after President Joe Biden's administration prohibited certain types of chips and machinery and added more than 100 Chinese companies to a restricted-trade list. The move by China is also seen as a new way of countering President-elect Donald Trump, who will take office on January 20. On November 25, he threatened to impose an “additional” 10% on the imports of Chinese goods in the US. Which rare minerals have been banned? China has banned the exports of three key rare minerals — gallium, germanium, and antimony. Gallium (atomic number 31) is a soft, silvery-white metal, similar to Aluminium, whose melting point is just above room temperature. Germanium (atomic number 32) is a greyish-white metalloid (meaning semi-metal) which is brittle. Antimony (atomic number 51) is a hard, brittle, silvery metalloid. What is the significance of the banned rare minerals? Gallium, germanium, and antimony hold a crucial place in the world today as they are mostly used in computers, defence, and renewable energy technology. While germanium is important for low-carbon technologies such as solar cells, semiconductor wafers made by using gallium arsenide instead of silicon can run at higher frequencies and are heat resistant, according to Wafer World Inc., a leading American company. Semiconductors, also known as microchips or integrated circuits, are the ‘new oil’ as they are practically inside every essential product these days — from household appliances to sophisticated defence systems, mobile phones to cars, toys to high-end luxury products. Moreover, germanium is also used in infrared technology, fibre optic cables and solar cells. Antimony is used in bullets and other weaponry, according to a report by Reuters. Why has China banned these rare minerals? In a statement on Monday, China banned the export of gallium, germanium, and antimony to the US, citing national security concerns. However, experts believe that the ban is a counter move against not only the Biden administration’s recent prohibition but also Trump’s plans to curb the dominance of Chinese goods in the US. China produces nearly all the world’s supply of critical minerals needed to make advanced technologies including semiconductors — it produces 60% of the world’s germanium and 80% of gallium. Therefore, it is now using the export ban to hit the US. But it is also likely that these measures can backfire for China. For instance, “after China temporarily halted exports to Japan in 2010, the Japanese government helped Lynas, a company in Australia, to develop a large rare earth metals mine there as an alternative supplier,” according to a report by The New York Times.
