China escalates trade war with US by slapping ban on minerals used in ammunition, semiconductors

China announced Tuesday that it is banning exports to the U.S. of some metals and rare minerals that can be used in the production of semiconductors and ammunition, according to the Financial Times.

China’s Ministry of Commerce announced that it is banning exports of “dual-use” items related to germanium, gallium, antimony, and superhard materials to the US in retaliation against the US government’s latest trade restrictions, according to the Financial Times. The ministry also announced that it is placing more rigid controls on exports of graphite-related items, the Financial Times reported.

The key minerals and metals are used in the production of a variety of items, including batteries, military hardware, and semiconductors, according to the Financial Times. Beijing has largely dominated the global supply of various crucial resources, the Financial Times reported. Researchers estimated there could be a $3.4 billion decrease in US gross domestic product if China implements a total ban on exports of germanium and gallium, minerals used in some semiconductors and other high-tech manufacturing, according to a November report from the U.S. Geological Survey.

China’s decision comes after the US Department of Commerce’s Bureau of Industry and Security (BIS) announced on Monday new restrictions designed to curb the People’s Republic of China’s capacity to produce advanced semiconductors that can be used in advanced weapon systems, artificial intelligence, and advanced computing, according to a Mond

“The US has broadened the concept of national security, politicizing and weaponizing trade and technology issues, and abused export control measures,” China’s commerce ministry said in a statement, the Financial Times reported.

“To safeguard national security . . . China has decided to strengthen export controls on dual-use items to the US,” China’s commerce ministry said, the Financial Times reported.

President-elect Donald Trump has proposed implementing massive tariffs on imported goods when he returns to the Oval Office, including on goods imported from China. Canada Prime Minister Justin Trudeau met with the president-elect at his residence in Mar-a-Largo on Friday after Trump threatened in November to impose a 25% tariff on all products from Canada and Mexico. Mexican President Claudia Sheinbaum signaled that she will retaliate if Trump imposes sweeping tariffs on Mexico.

The president-elect said Monday he would impose a 10% tariff on Chinese goods so that Beijing does more to stop the trafficking of Chinese-made chemicals used in fentanyl, according to Reuters. China criticized Trump’s tariff threats, saying U.S. tariffs will not solve America’s problems, Reuters reported.

The U.S. has been engaged in an ongoing tech war with China in an effort to gain the upper hand in the production of advanced technology. China announced in August plans to enact export restrictions on antimony, a mineral that is critical for producing certain weapons.

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