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On April 4, just 24 hours after Donald Trump announced the taxes that he was going to apply to the importation of most products from abroad, The administration led by Xi Jinping responded. And he did it with forcefulness. In early December 2024 He chose to prohibit The export of some critical minerals to the US, among which were three essential metals for the chips industry: Gallium, Germanio and Antimony.
Shortly after the Chinese government added two more critical metals to its list of export restrictions: Scandio and Disposio. These chemical elements are probably less known than metals prohibited by China previously, such as Gallium or Germanio, but are at least as important as the latter because they have a fundamental role in the industries of integrated circuits, telecommunications and the manufacture of storage devices.
China has Europe at its feet
The ability to put pressure from China had not yet been extinguished. Just ten days later, on April 14, the Administration did not hesitate take another step forward With the purpose of putting in check, in addition to the industries that I just mentioned, those of electric cars, aeronautics and advanced armament. To achieve this, it effectively suspended, in addition to the export of the most valuable rare earths, that of high -power magnets that have a critical role in the industries that I have cited in this same paragraph.
China’s export controls are mainly directed to the US, but the old continent does not remain unscathed
Chinese authorities are retaining in ports throughout the country not only rare earths, but also high -power magnets acquired by electric cars manufacturers throughout the planet, aerospace companies, chip factories and armament companies. Many of these organizations have high -power magnet reservations made with rare earths, but possibly They will only allow them to subsist a few months.
Europe in particular is in an extremely delicate position. China’s export controls are directed mainly to the US, but the old continent It does not remain unscathed. At least for the moment. In fact, in Germany, which as we all know is the heart of the European car industry, There are already experts who assure that if China continues to retain rare earths and electric motors some essential parts of the electric cars production chain They will stop in no more than six weeks. For the European car industry this blow would be very difficult to fit.
European companies that are dedicated to the manufacture of semiconductors are also in a very compromised situation. According to Reuters Many European chip production lines They will stop very soon Due to the shortage of crucial supplies, which has led the European Chamber of Commerce to meet with officials of the Ministry of Commerce of China to ask them to allow rare earth supply to European companies that are dedicated to the production of integrated circuits.
The result of this meeting has not yet been officially completed, but the information that has been leaked maintains that China is willing to relax its export controls for some European companies.
Image | Peggy Greb, US Department of Agriculture
More information | Reuters
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