US tech limits on China trigger immediate counter-strike in minerals trade

In a last-minute move before the change in leadership Joe Bidenʼs administration set new tech-export rules targeting Chinaʼs semiconductor industry. The Dec 2nd announcement covers 24 types of chip-making equipment three software tools and high-bandwidth memory chips; plus adds 140 firms to a restricted list

Beijings counter-punch came quick – they blocked exports of tech-critical materials (gallium germanium and antimony) which are key components in defense tech. The move shows Chinaʼs grip on rare-earth supplies: they control about 94% of gallium 83% of germanium stocks and half of US antimony needs

This action is the culmination of our targeted approach‚ in concert with allies to impair [Chinaʼs] ability to indigenize advanced technologies that pose a risk

The US restrictions dont come as a surprise – its the third set since fall 22. Japan and Netherlands (who make most advanced chip equipment) got special passes after long talks. Jake Sullivan US security chief says itll take roughly 10 years to build independent supply chains

• Gallium: essential for defense systems
• Germanium: used in fiber-optics
• Antimony: vital for military tech
• Graphite: key for EV batteries

Chinaʼs foreign ministry spokesperson Lin Jian claims the US is “maliciously blocking“ their tech growth. Expert Cullen Hendrix from Peterson Institute notes that China can “spread pain across more sectors“ due to its market control. US officials estimate a full Chinese export ban could cut US GDP by $3.4B – mostly hitting chip makers

Looking ahead experts think Donald Trumpʼs incoming team will keep tough on China. The first Trump era started tech limits and got 60+ countries to join anti-Chinese vendor programs. Though his style differs from Bidens multi-country approach the core tech policy might stay similar