After Trump's Tax Increase, China-U.S. Trade War Escalates: China Bans Export of Key Minerals

Following Trump's pledge to raise tariffs on Chinese products, tensions between the U.S. and China have intensified. China has banned the export of key minerals such as gallium, germanium, and antimony to the U.S. and has tightened controls on graphite exports. The U.S. government has restricted the sale of advanced semiconductors and related software tools to China, expanding the "entity list" to over 140 Chinese companies. Commerce Secretary Raimondo stated that the new rules aim to weaken China’s ability to utilize technologies that threaten U.S. security. The U.S. is also encouraging Western countries to expand semiconductor investments. Washington is limiting the export of advanced semiconductor technology to other countries but has excluded allies like Japan, South Korea, and the Netherlands. China is the largest producer of key minerals; however, the U.S. is seeking alternative resource sources, such as establishing a "Mineral Security Partnership" with the EU. China has maintained a restrained stance on limiting technology access from the U.S. but may change its approach due to U.S. restrictions. After announcing the export ban, industry associations condemned U.S. restrictions on strategic technologies, and Beijing extended the ban to all countries, threatening to hold violators accountable.