Why China's ban on exports of gallium, germanium and more could cost US billions

China banned exports of critical minerals gallium, germanium and antimony – elements considered essential by many tech and defense industries – to the U.S. on Tuesday.

The ban, which applies only to the U.S. market, is China’s response to expanded American restrictions on chip-related technology shipments to China, Reuters reported.  

Under China’s ban, the U.S. GDP would lose an estimated $3.4 billion, according to an economic model developed by the U.S. Geological Survey last month. 

Why are gallium, germanium and antimony important?

Gallium and germanium are essential for semiconductor production, according to mining.com. Germanium is used for other high-tech manufacturing, including: 

• Optoelectronics, devices that detect and control light
• Solar cells
• Fiber optic cables

Antimony is used in military weaponry, says the Center for Strategic and International Studies. Applications include: 

• Armor-piercing ammunition
• Night vision goggles
• Infrared sensors
• Bullets
• Precision optics

How essential is China in production of these minerals?

China was the world's leading producer of gallium, germanium and antimony in 2023. The U.S. did not produce gallium or antimony in 2023. It did produce some zinc concentrates containing germanium at mines in Alaska and Tennessee.

CONTRIBUTING George Petras