In a pivotal move signaling a potential thaw in U.S.-China trade tensions, China's Ministry of Commerce announced on Sunday the suspension of its year-long ban on the export of three critical technology metals, gallium, germanium, and antimony, to the United States. These exports, previously halted as part of retaliatory trade measures, will now resume under strict licensing controls, effective immediately and lasting through November 27, 2026.
The reversal marks a significant shift in China’s strategic resource policy, underscoring its new diplomatic overture following a high-level meeting between Chinese President Xi Jinping and U.S. President Donald Trump in South Korea on October 30. The two leaders agreed on a limited détente, which includes easing tariffs and export restrictions that have roiled global supply chains and exacerbated geopolitical uncertainties.
Gallium, germanium, and antimony are defined as dual-use materials, essential for both civilian and military technologies. They are crucial for manufacturing semiconductors, fiber-optic cables, electric vehicles, LED lighting, photovoltaic panels, electronic warfare systems, and ammunition.
China dominates global production of these materials: it accounts for 99% of the world's refined gallium output, about 83% of germanium production, and nearly half of mined antimony. Their strategic importance is heightened by their role in national security and advanced industrial applications. According to the U.S. Geological Survey, the temporary embargo on just gallium and germanium could have cost the U.S. economy an estimated $3.4 billion, with the semiconductor sector bearing the brunt of the impact.
The export ban, originally enforced in December 2024, was a direct response to Washington’s tightening of export controls targeting Chinese access to advanced semiconductors and high-bandwidth memory chips, key components in next-generation electronics and computing systems.
The embargo came on the heels of a broader export control mechanism China introduced between August 2023 and September 2024, requiring exporters to obtain licenses for exporting dual-use items. In December 2024, the U.S. was singled out for an outright ban, escalating trade frictions. U.S. companies were forced to improvise, often rerouting shipments through third countries to circumvent the restrictions.
Under the terms of the new suspension, however, exporters must continue to secure licenses from Chinese authorities before delivering these metals internationally, and the ban on supplying these materials to U.S. military entities remains firmly in place. China’s gesture on gallium, germanium, and antimony follows a series of recent moves to ease pressure on global manufacturing chains. The Ministry of Commerce also announced the suspension of heightened checks required to export graphite-related items to the United States. Earlier this month, China agreed to defer by one year the implementation of stricter controls on rare earths and lithium battery materials, crucial for electric mobility and green energy technologies.
Furthermore, Beijing has temporarily suspended the additional 10% tariffs on several U.S. agricultural imports, most notably soybeans, which had hurt American farmers, a significant political constituency for President Trump.
While the temporary suspension is being hailed as a step toward rebuilding cooperation, analysts caution against viewing it as a full reconciliation. The licensing requirements underscore China’s desire to retain leverage in its tech rivalry with the United States. Moreover, Washington’s export controls on chip-making tools and advanced logic chips remain intact, with broader decoupling trends continuing in sensitive sectors.
Still, the suspension provides much-needed relief to industries on both sides of the Pacific, especially in sectors dependent on stable access to specialty minerals. The move is also welcomed by American and European manufacturing interests, which have been lobbying for a de-escalation amid concerns over supply chain resilience. The decision not only showcases the continuing interdependence between two economic superpowers but also reflects China’s calculated strategy of using its dominant position in critical mineral supply chains as a negotiating tool on the global trade chessboard.
Although the export ban has been suspended until late 2026, the longer-term trajectory of U.S.-China tech relations remains uncertain. With elections looming in both countries, policy shifts could alter the current détente. Nonetheless, the recent agreement marks a pause in the tit-for-tat economic combat that has characterized the bilateral relationship in recent years and a recognition from both sides of the need to stabilize and de-risk sensitive trade and technology supply lines.
As the world’s two largest economies signal a temporary retreat from confrontation, global markets and industries heavily reliant on semiconductors, defense components, and clean technology materials are hoping this latest development paves the way for more predictable, cooperative trade practices in the future.