China has suspended its ban on exporting gallium, germanium, and antimony to the United States, the Commerce Ministry announced on Sunday. The three metals essential for semiconductors, fiber optics, ammunition, and flame retardants were previously banned from sale to the U.S. in December 2024, amid escalating trade tensions over Washington’s chip export curbs.
The new suspension, effective until November 27, 2026, follows a recent meeting between Chinese President Xi Jinping and U.S. President Donald Trump in South Korea, suggesting a tentative thaw in economic relations.
Why It Matters
The move marks a strategic de-escalation in the tech trade war between the world’s two largest economies. Although the outright ban is lifted, exporters still require Beijing’s approval, indicating China’s intention to retain leverage over critical supply chains while signaling goodwill.
For U.S. industries, especially chipmakers and defense suppliers, the decision could ease raw material shortages that had prompted costly rerouting of shipments through third countries.
China’s Commerce Ministry: Confirmed that the metals remain under dual-use export controls, meaning they can serve both civilian and military applications.
U.S. Manufacturers: Likely to welcome the move as a relief to strained supply lines but remain cautious due to the continued licensing requirement.
Trade Analysts: View the suspension as a temporary diplomatic gesture tied to recent bilateral engagement rather than a full policy reversal.
Security Observers: Note that exports to U.S. military users remain banned, reflecting China’s intent to protect its strategic technologies.
What’s Next
The suspension will last for two years, after which Beijing may review the measure based on the trajectory of U.S.-China trade and technology relations.
Analysts expect continued negotiations between Washington and Beijing on critical minerals and chip export rules, as both sides balance economic interdependence with national security concerns.
Meanwhile, exporters and global markets will closely monitor licensing procedures and compliance checks, which remain a powerful tool in China’s economic statecraft.
With information from Reuters.
