China responds to US chip sanctions, banning exports of key minerals

China has banned exports of some rare minerals to the United States as tensions over trade heat up after the U.S. issued new restrictions on exports of certain semiconductor chips and equipment to China earlier this week.

The Chinese Commerce Ministry's new directive applies to minerals including gallium, germanium, antimony and other materials with potential military applications, the Associated Press reported.

The directive, which takes effect immediately, cited national security concerns and builds upon the existing limits China placed on some mineral exports to the U.S. earlier this year, according to a Reuters report.

The move from Beijing was largely seen as a response to the Commerce Department's new export controls issued on more than 100 Chinese chipmaking tool manufacturers. The restrictions also block the sales of certain ships and some software tools

Commerce Secretary Gina Raimondo said Monday the new restrictions seek to “impair” China’s “ability to indigenize the production of advanced technologies that pose a risk to our national security.”

Chinese foreign ministry spokesperson Lin Jian told reporters Tuesday that Beijing has "lodged serious protests" with the U.S. for the newly announced restrictions, stating the U.S. is "maliciously suppressing China's technology progress."

"Let me reiterate that China firmly opposes the US’s overstretching the concept of national security, abusing export controls, and wantonly imposing illegal unilateral sanctions and 'long-arm jurisdiction' over Chinese companies," Lin said.

China has a large hold on the global mineral supply chain, making up about 60 percent of the world's rare earth mineral production and 85 percent of its mineral processing. Energy Secretary Jennifer Granholm said the U.S. is "very concerned" about China's clasp on the supply chain earlier this year.

The Chinese Commerce Ministry in August rolled out export restrictions on antimony, used for various products like batteries or weapons, while implementing stricter controls on graphite exports, the AP reported.

The latest limits come as President-elect Trump, who has threatened to ramp up tariffs on China, prepares to take office next month, during which he is expected to continue or ramp up the Biden administration's hardline approach towards Chinese chip production.

The Biden administration has issued three crackdowns on China’s chip production in three years in an attempt to curb Beijing's development of military equipment and artificial intelligence (AI) systems that pose a risk to U.S. national security.

The Hill reached out to the Commerce and State Departments for comment.

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