The Biden administration on Thursday vowed to respond to China’s move to block the exports of minerals vital for military and energy technology, calling the export ban “coercive.”
“We are still assessing the new controls, but we will take necessary steps to mitigate the impact and deter further [China’s] coercive actions,” said a spokesperson for the State Department. “These new controls only underscore the importance of strengthening our efforts with other countries to de-risk and diversify critical supply chains away from” China.
The State Department’s comment is a direct response to China’s announcement this week that it was banning the export of gallium, germanium and antimony and ramping up oversight of any shipments of graphite — a key battery ingredient — out of the country. China processes the bulk of the world’s graphite, as well as cobalt and other raw materials.
Beijing’s move is the latest in a back-and-forth with Washington over mineral and technology markets that could rattle the U.S. economy and sectors reliant on raw materials mined and processed in China. Federal researchers last month warned that the U.S. economy could see a $3.4 billion hit if China imposed a total ban on gallium and germanium.
