China Suspends Export Ban on Gallium and Germanium Amid Easing US Trade Tensions

Beijing Reverses Key Restriction on Critical Dual-Use Materials

In a significant move signaling a fragile de-escalation of the ongoing technology rivalry, the Chinese Ministry of Commerce announced the suspension of its ban on exporting certain dual-use materials, including gallium, germanium, and antimony, to the United States.

The decision, announced on a Sunday, follows months of intense diplomatic efforts aimed at easing the trade tensions that have characterized the relationship between the world’s two largest economies. The immediate lifting of the restrictions provides crucial relief to American manufacturers reliant on these minor metals for high-tech production, particularly in the semiconductor and defense sectors.

This policy reversal is widely viewed by industry analysts as a reciprocal gesture, potentially paving the way for further dialogue on the complex web of export controls and tariffs that have constrained global supply chains since the start of the tech war.

The Strategic Importance of Dual-Use Minerals

The materials targeted by China’s previous export controls are classified as “dual-use,” meaning they possess both commercial and military applications. China holds a dominant position in the global supply chain for refining and processing these critical minerals, giving Beijing significant leverage in geopolitical disputes.

Gallium, Germanium, and Antimony: Essential Inputs

The three materials specifically mentioned in the context of the lifted ban are indispensable to modern high-performance technology:

• Gallium: Crucial for manufacturing compound semiconductors, particularly gallium nitride (GaN) and gallium arsenide (GaAs). These are essential components in high-frequency radar, 5G base stations, solar panels, and advanced military electronics.
• Germanium: Primarily used in fiber optics, infrared optics (critical for night vision and thermal imaging), and certain types of high-efficiency solar cells and satellite components.
• Antimony: A key ingredient in flame retardants, specialized batteries, and alloys used to harden lead, which has applications ranging from consumer electronics to munitions.

China’s near-monopoly on the processing of these minor metals meant that the previous export controls, first implemented in mid-2023, caused immediate concern in Washington and Brussels regarding supply chain resilience and national security.

The Context of the Original Restrictions

The original decision by Beijing to impose export controls on these materials was a direct countermeasure to escalating restrictions placed by the U.S. on the sale of advanced semiconductor technology and manufacturing equipment to China.

Starting in 2022, the U.S. Commerce Department tightened its export control regime, aiming to limit China’s access to high-end artificial intelligence (AI) chips and the sophisticated tools required to produce them. China’s response was a strategic deployment of its own economic leverage: controlling the raw materials necessary for the very technologies the U.S. sought to protect.

“The imposition of the dual-use material controls was a clear signal from Beijing that the technology war is a two-way street,” noted one trade expert. “By targeting inputs like gallium and germanium, China hit the U.S. where it hurts—the foundational supply chain for next-generation defense and civilian tech.”

This tit-for-tat dynamic had severely complicated procurement for U.S. and allied companies, forcing them to seek expensive and time-consuming alternatives or invest heavily in domestic mining and processing capabilities.

Implications for US Supply Chains and Global Trade

The suspension of the ban offers immediate, practical relief to U.S. companies that had been struggling to secure reliable supplies of these critical inputs. While the long-term goal of diversifying supply chains remains, the short-term availability of Chinese-processed materials will stabilize pricing and production schedules.

A Step Toward De-Risking

This move is a tangible result of high-level diplomatic engagement between the two nations, suggesting that both sides are willing to explore avenues for “de-risking” the relationship, even if fundamental strategic competition remains.

Key Immediate Impacts:

1. Semiconductor Production: Eases bottlenecks for manufacturers of specialized chips used in electric vehicles, high-performance computing, and military radar systems.
2. Price Stabilization: Reduces the upward pressure on the global market prices for gallium and germanium, which had spiked following the initial imposition of controls.
3. Diplomatic Momentum: Provides positive momentum ahead of potential future trade negotiations, demonstrating that economic tools can be used to signal cooperation as well as confrontation.

However, experts caution that this suspension is not a permanent solution. Because the ban was suspended rather than permanently revoked, China retains the ability to reimpose the controls should trade tensions flare up again. This uncertainty ensures that the drive for supply chain resilience—moving away from reliance on any single country—will continue to be a priority for U.S. industrial policy.

Key Takeaways

This policy reversal by the Chinese Ministry of Commerce marks a crucial, if temporary, thaw in the US-China technology conflict:

• The Action: China suspended its export ban on gallium, germanium, and antimony to the U.S.
• The Reason: The move is a direct result of easing trade tensions and high-level diplomatic engagement.
• The Materials: These are critical dual-use materials essential for advanced semiconductors, fiber optics, and defense technology.
• The Significance: It provides immediate relief to U.S. manufacturers and stabilizes global supply chains for these minor metals.
• The Caveat: The suspension is not a permanent revocation, meaning geopolitical risks to the supply chain persist, reinforcing the need for long-term diversification efforts.

What’s Next

The focus now shifts to whether this gesture will lead to reciprocal actions from the U.S., potentially involving adjustments to its own stringent export controls on advanced semiconductor equipment. Industry observers will be monitoring upcoming bilateral meetings for signs of further cooperation or, conversely, any indication that the suspension might be temporary. The long-term trajectory of the US-China relationship remains defined by strategic competition, but this policy change offers a rare moment of practical economic cooperation in 2025.