On April 4, just 24 hours after Donald Trump announced the tax increases aimed at the importation of most foreign products, the administration led by Xi Jinping responded vigorously. In early December 2024, China chose to prohibit the export of several critical minerals to the US, which included three essential metals crucial for the chips industry: Gallium , Germanium , and Antimony .
Shortly after this initial move, the Chinese government extended its list of export restrictions to include two additional critical metals: Scandium and Disposio . Though these chemical elements may not be as well-known as Gallium or Germanium , they are equally vital due to their significant roles in the realms of integrated circuits , telecommunications , and the manufacture of storage devices .
The ability for China to exert pressure was far from diminished. On April 14, just ten days later, the administration made another decisive move aimed at placing additional industries—including electric vehicles, aeronautics, and advanced armaments—under scrutiny. This time, they not only suspended the export of rare earths but also restricted the shipment of high-power magnets, which are crucial to the industries mentioned.
Tungsten Hunting and Capture
Tungsten, or Wolframium (W), is a relatively rare metal in the Earth’s crust. Known for its density and extraordinary hardness, it boasts the second-highest melting point of all chemical elements, surpassed only by carbon, reaching an impressive 3,422 °C. Tungsten has a wide array of applications, but its value was notably amplified during World War II , where it gained prominence for its suitability in armoring vehicles and manufacturing ammunition.
In February, China announced it would respond to US sanctions by implementing the strictest export controls on tungsten.
China currently controls 83% of the world’s tungsten, providing it with a significant advantage that allows for drastic limitations on how much of this precious metal reaches its rival powers, including the USA. In February, the Chinese administration declared its intent to respond to US sanctions by enabling stringent export controls on tungsten. Since that announcement, the price of this mineral has steadily climbed, reaching historical highs. Today , tungsten is 55% more expensive than it was back in February.
Beyond China, the primary producers of tungsten include Vietnam , Russia , and several countries in Central Africa and South America . In response to these geopolitical tensions, Europe, Japan , and South Korea are proactively taking steps to secure their supplies of tungsten. They are implementing political measures aimed at promoting local production to minimize reliance on China. The US has even contemplated replenishing its strategic tungsten reserves after years of depleting them.
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In Xataka | The US will not be able to contain the technological development of China. Experts from the chips industry forecast it.
Parsing through the global market dynamics reveals how heavily intertwined politics and resource management have become in today’s world. The response from Xi Jinping’s administration underscores not only the strategic importance of these minerals but also highlights the lengths nations will go to secure their economic interests. As tensions continue to rise, countries must carefully navigate this landscape to safeguard their industries and technological advancements. Effective collaboration and innovation may well determine future outcomes in this ongoing geopolitical chess match.