China has escalated the ongoing tech and trade war with the U.S. by banning exports of critical high-tech and military-use metals, including gallium, germanium, and antimony, to the American market. This swift retaliation follows President Joe Biden’s latest round of restrictions to stifle Beijing’s technological ambitions.

According to China’s Ministry of Commerce, the export bans—alongside tighter controls on graphite sales—directly respond to what it describes as the U.S.’s overreach under the guise of “national security.” A ministry spokesperson sharply accused Washington of “politicising and militarising economic and technological issues” and “unreasonably restricting exports to China.” Irony abounds as the U.S., a country long lauded for championing free trade, is now the target of China’s protectionist countermeasures.

This isn’t just a knee-jerk reaction. The metals in question play pivotal roles in industries ranging from semiconductors and satellites to night vision technology. Gallium and germanium are critical to high-tech manufacturing, and the U.S. Geological Survey estimates that an export ban could cost the American economy $3.4 billion. For context, China supplied the majority of U.S. imports of these metals between 2019 and 2022. However, in 2023, exports to the U.S. dropped to zero—either because American industries were depleting reserves or diversifying their sourcing strategies.

Earlier this week, the Biden administration ramped up its tech war by imposing fresh restrictions on selling high-speed memory chips to China. The measures aim to curb Beijing’s access to advanced AI technologies. This tit-for-tat exchange reflects the intensifying rivalry between the world’s two largest economies, each attempting to weaponise its respective strengths—technology for the U.S. and natural resources for China.

China’s move has sent shockwaves through global supply chains. Prices for gallium and germanium soared after Beijing’s initial controls, disrupting trade flows and forcing industries reliant on these materials to scramble for alternatives. The U.S. has historically represented only a fraction of China’s antimony exports, but the new measures highlight the growing vulnerability of American industries.

If China’s export bans are designed to inflict maximum economic pain, they are also a warning shot across the bow. By targeting critical minerals, Beijing is reminding Washington—and the rest of the world—that its dominance in these resources gives it significant leverage.
Yet this tit-for-tat approach carries risks. While Beijing sends a clear message, it also risks alienating other trading partners wary of such aggressive tactics. At the same time, U.S. industries are grappling with rising costs and disrupted supply chains, putting them in a precarious position as the global economy faces mounting uncertainty.

As President Xi Jinping tightens his grip on these critical exports, this move raises questions about the sustainability of the U.S.’s reliance on China for key materials. The escalating conflict may push the U.S. to invest more aggressively in domestic mining or alternative sources, but such strategies take years to bear fruit.

Ultimately, both sides are playing a dangerous game of economic brinkmanship. While China flaunts its resource dominance, the U.S. doubles down on tech restrictions, leaving industries in the crossfire. In the short term, Beijing’s ban will sting. In the long term, it may spur global efforts to diversify supply chains—a shift that could erode China’s leverage.
For now, Beijing’s message is clear: two can play the game of economic nationalism, and China is ready to retaliate.