It’s clear that critical minerals will be China’s weapon of choice in its escalating trade war with the United States. Every time Washington imposes new restrictions on exports of advanced semiconductor chips to China, Beijing responds by tightening controls on exports of the critical inputs for chip manufacturers.
A third clamp-down on China’s semiconductor industry has drawn a swift response in the form of a full ban on exports of Chinese gallium and germanium to the United States. Exports of antimony, used in photovoltaic glass, are now also banned in what looks like a riposte to US tariffs on Chinese solar panels.
This is a carefully calibrated escalation, China using its dominance of critical metals to land like-for-like retaliatory blows for US attacks on its high-technology capabilities. However, the rules of engagement are set to change with the incoming Donald Trump administration threatening blanket tariffs on all Chinese goods.
For the rest of this column: https://www.reuters.com/markets/commodities/critical-metals-will-be-key-battleground-us-china-trade-war-andy-home-2024-12-17/