China Restricts Exports of Gallium, Germanium, Sparking Global Supply Chain Tensions

In July 2023, China's Ministry of Commerce announced the implementation of new export controls on several critical raw materials, including gallium and germanium, directly impacting global manufacturers in the semiconductor, electric vehicle, and fiber optic cable industries.

In early July, China's Ministry of Commerce abruptly announced export controls on gallium and germanium, two crucial minerals used in high-tech sectors such as semiconductors, electric vehicles, and military technology. Officially, the move was justified on the grounds of "national security." As China is the world's dominant supplier of both rare metals, the decision was widely interpreted internationally as a direct countermeasure against the U.S. and its allies' tightening semiconductor export controls on China. The action immediately forced global tech companies to scramble for alternative supply sources.

China's export control move signaled the escalation of the U.S.-China technology competition from merely U.S. export restrictions to two-way geoeconomic weaponization. From a conservative perspective, this exposed the vulnerability of Western nations in critical mineral supply chains, amplifying fears of resource nationalism. It further galvanized Western investment in domestic and diversified sourcing of key raw materials, elevating "mineral security" to the same national security importance as "energy security."