Finance
China expands key mineral export controls after US imposes tariffs
Published by Global Banking and Finance Review
Posted on February 4, 2025
3 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 4, 2025
3 min readLast updated: January 26, 2026
China imposes new export controls on five minerals in response to US tariffs, affecting global markets and prices.
By Amy Lv, Lewis Jackson and Ashitha Shivaprasad
BEIJING (Reuters) -China said on Tuesday it would restrict exports of five metals used in defence, clean energy and other industries in response to fresh U.S. 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% tariff on Chinese imports into the U.S. came into effect at 1201 ET (0501 GMT).
Licences 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 U.S. 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 authorised 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.
Indices which track a tungsten compound and indium prices outside China hit their highest levels in a decade or more in late January before these curbs were announced.
SUDDEN STOP, SLOW RECOVERY
After previous export curbs were imposed on other metals, exports dropped sharply as companies scrambled to get export licences, a process that takes roughly six weeks.
In the past, shipments slowly rebounded as licenses were granted, although in the case of germanium, exports are still considerably below pre-restriction levels.
However, it remains to be seen whether shipments destined to the U.S. will qualify for licences. The United States stopped mining tungsten in 2015 and has not produced refined bismuth since 1997, relying in both cases on imports.
(Reporting by Farah Master in Hong Kong, Lewis Jackson and Amy Lv in Beijing, Ashitha Shivaprasad in Bangalore; Editing by Christian Schmollinger, Sonali Paul and Bernadette Baum)
China will restrict exports of tungsten, tellurium, bismuth, indium, and molybdenum-related products to safeguard national security interests.
The new export controls were implemented in response to fresh U.S. tariffs and are part of China's strategy to leverage its dominance in critical minerals.
Analysts suggest that the restrictions could lead to higher prices outside China, although some traders believe the impact may be limited due to alternative sources.
Companies must apply for export licenses, a process that typically takes about six weeks, which can lead to delays in shipments.
Past export curbs have resulted in a sharp drop in exports as companies scrambled for licenses, with some exports still below pre-restriction levels.
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