China has introduced new restrictions on the export of five crucial metals, including tungsten and indium, which play vital roles in industries like clean energy and defense.
This move follows a recent decision by the United States to impose a 10% tariff on Chinese goods, prompting immediate shifts in global supply chains.
The latest export controls are seen as part of China’s broader strategy to exert more influence over critical minerals, which it dominates in terms of mining and processing. This marks the continuation of China’s efforts to tighten control over key materials since 2023.
These restrictions also come after China proposed similar export limitations on advanced battery components and the processing of lithium and gallium, metals essential to the clean energy sector. However, the specific implementation date for these changes is still uncertain, as they remain open for public comment until early February.
The new controls are expected to significantly affect Western companies, who now face the challenge of adapting their supply chains to account for the reduced availability of these vital minerals. The move is poised to further strain the global market and could trigger a shift in how these materials are sourced and processed worldwide.
