China Issues New Mineral Export Controls After US Imposes Tariffs
China has broadened its export restrictions to cover five rare metals that are essential for defense and other industries.
In a statement released on Feb. 4, China’s commerce ministry and customs officials announced the export restrictions on metals such as tungsten and indium. These measures take effect immediately.
A spokesperson for the commerce ministry said in a separate statement that the new restrictions on 25 rare metals and related technologies are intended to “better safeguard national security and interests” and comply with international “non-proliferation” obligations.
Beijing’s announcement means traders who seek to export these minerals in various forms will now have to obtain a license from the Chinese authorities and provide detailed information about the overseas buyers and their export plans.
Tungsten
Tungsten, known for its hardness and high melting point, is pivotal in defense technology. Its unique properties make it ideal for military applications such as armor-piercing projectiles, missiles, and shielding equipment from nuclear radiation.
In the United States, approximately 60 percent of tungsten is used to manufacture durable components for tools and machinery, primarily in construction, mining, and oil and gas drilling. It’s also used to produce electrical components such as wires and filaments, according to the U.S. Geological Survey (USGS).
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Acquired by Almonty Industries in 2015, the Sangdong mine is located in Yeongwol County, roughly a three-hour drive from Seoul. The mine was shut down 30 years ago as Chinese tungsten production surged. The Canada-based company has committed to a long-term supply contract that will see 45 percent of its tungsten output shipped directly to the United States.
Tellurium
Tellurium, a byproduct of copper refining, is mainly used in making solar panels, memory chips, and other products.
In 2023, China accounted for 67 percent of global tellurium production, according to data from the USGS.
As for the imports, about 75 percent are sourced from China and Canada, with smaller quantities from producers in the Philippines and Belgium, the agency said.
Bismuth
Bismuth is mainly used to make chemicals used in everyday products such as health care, beauty products, and electronics in the United States. However, according to the USGS, the country has not produced bismuth domestically since 1997, relying heavily on imports to meet its needs.
Most of the bismuth used in the United States comes from China. Between 2020 and 2023, approximately 67 percent of U.S. bismuth imports were sourced from China, with additional supplies coming from South Korea, according to the most recent USGS data.
Molybdenum
Molybdenum is key to the construction sector in the United States and is primarily used to enhance the strength of iron and steel. It is also used in making everyday items, such as ingredients in lubricants and paints.
The United States has worked on boosting its domestic supply of molybdenum and sourced most of it from Chile rather than China. From 2020 to 2023, U.S. imports from Chile made up 77 percent of total imports, according to USGS.
Currently, the U.S. share of molybdenum global production is about 12 percent, while China dominates the market with a 40 percent share, USGS data show.
Indium
Indium is a widely used metal that is not currently mined in the United States. Instead, U.S. companies source indium from countries such as China and South Korea to make products.
Indium is primarily used to produce a transparent coating called indium tin oxide, or ITO. This coating plays a vital role in the screens of devices such as TVs and smartphones.
The USGS said China is the world’s leading producer and exporter of indium, responsible for 70 percent of global production.
As of September 2024, approximately 25 percent of the indium imported by the United States originated from China, according to the USGS.
