Agencies
China said on Tuesday it would restrict exports of five metals used in defense, clean energy and other industries in response to fresh US tariffs, refraining from the outright export bans Beijing has previously used against Washington.
The restrictions were the latest attempt by China since 2023 to leverage its dominance in mining and processing critical minerals used in everything from smartphones and electric car batteries to infrared missiles and ammunition.
The new curbs by China stop short of outright export bans and are narrowly targeted in some cases. They form part of the measured package of tariffs and other policies unveiled by Beijing after an additional 10 percent tariff on Chinese imports into the US came into effect at 1201 ET (0501 GMT).
Licenses will now be required to export 20 tungsten, tellurium, bismuth, indium and molybdenum-related products to “safeguard national security interests”, the Commerce Ministry said.
Uses for the metals range from solar panels to artillery shells. For example, China will restrict the export of certain types of molybdenum powders used to make missile parts.
It shipped 287 tons last year, about half going to Japan, customs data showed.
Markets had speculated China would expand export controls ever since its decision last December to ban exports to the US of antimony and other materials, according to Jessica Fung, head of Consulting at Project Blue. The move will likely force up prices outside China, she added.
However, a London-based trader, who requested anonymity as they were not authorized to speak to the media, said the move was a “warning shot” and there wouldn’t be a big impact on markets as alternative sources exist.