The nation has signaled it’s prepared to hit back harder still, in ways that could inflict serious economic pain on its biggest economic rival
China’s recent ban on exports of gallium, germanium, and other critical minerals marks a significant escalation in the ongoing US-China trade war. These materials, vital for semiconductors, defense, and clean energy technologies, highlight China’s strategic leverage as it controls most global supply. While the immediate economic impact on the US is limited due to existing restrictions and alternate sources, the bans signal Beijing’s readiness to inflict greater pain if tensions escalate. This move underscores a broader trend of supply chain diversification efforts, with the US investing heavily in alternative sources and domestic production to counter China’s dominance. However, further restrictions could harm both economies and delay critical advancements in EVs and clean energy, raising concerns about the long-term fallout of this intensifying conflict.
My Take
China’s strategic use of critical minerals in trade disputes reveals a pressing need for nations to strengthen their resource independence. Companies should prioritize recycling and securing alternative materials now, as the trajectory of this trade war suggests even tighter restrictions ahead.
#SupplyChain #CriticalMinerals #Semiconductors #TradeWar #EVs #CleanEnergy #USChinaRelations #TechPolicy #Geopolitics #Manufacturing
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Credit: MIT Technology Review