China Tightens Export Rules on Five Key Metals: China has introduced new export restrictions on five critical metals widely used in industries like defense, clean energy, and technology. This move came shortly after the U.S. imposed an additional 10 percent tariff on Chinese goods, by rising trade tensions between the two nations. Here is a breakdown of the metals affected:
1. Tungsten
Tungsten is one of the hardest metals, second only to diamonds in strength. It’s a key material in making artillery shells, armor plating, and cutting tools. About 60 percent of U.S. tungsten use goes into producing tungsten carbide, a durable material used in construction, metalworking, and oil drilling. China dominates this market, producing over 80 percent of the global supply in 2023. The U.S. hasn’t mined tungsten since 2015, relying heavily on imports from China, Vietnam, Russia, South Korea, and Spain.
2. Indium
Indium is essential for making phone screens, TV displays, and fiber-optic technology. The rise of 5G networks has increased demand for this metal. China leads global production, supplying 70 percent of the world’s indium. As of September 2024, China accounted for 25 percent of U.S. indium imports, with Japan and South Korea also being major buyers.
3. Bismuth
Bismuth is used in solders, alloys, medications, and atomic research. The U.S. stopped producing refined bismuth in 1997 and now relies almost entirely on imports. China produced over 80 percent of the world’s bismuth last year, with South Korea and Laos as other key producers.
4. Tellurium
Tellurium, a byproduct of copper refining, is used in solar panels, memory chips, and metallurgy. China produced about 75 percent of the world’s refined tellurium in 2024. While the U.S. has facilities to produce copper telluride, the precursor to tellurium, further refining is done abroad, making the U.S. dependent on imports for finished products.
5. Molybdenum
Molybdenum strengthens steel alloys, making them resistant to heat and corrosion. It’s also used in lubricants, pigments, and petroleum refining. China produced about 40 percent of the global supply in 2024, while the U.S. contributed just 12 percent.
These new export curbs could disrupt global supply chains, especially for countries like the U.S. that rely on China for these essential materials.