China’s latest export controls on key strategic metals, a direct response to U.S. President Donald Trump’s recent tariff hike, are being interpreted as a tactical move rather than a direct economic blow—aimed at pressuring Washington back to the negotiating table.
The Chinese foreign ministry has not yet responded to a request for comment.
Trump escalated trade tensions last weekend by increasing tariffs on Chinese imports by 10%, citing efforts to curb the flow of precursor chemicals linked to the U.S. fentanyl crisis.
China retaliated Tuesday by imposing restrictions on exports of tungsten, bismuth, indium, molybdenum, and tellurium—marking the third time in three months that Beijing has wielded its dominance in global resource supply as leverage.
Among the affected materials, tungsten poses the most significant strategic risk. China controls 80% of global tungsten supply and accounts for 45% of U.S. imports, according to the U.S. Geological Survey (USGS). Tungsten is vital for military applications, including armor-piercing rounds, and is also used in light bulbs and electric vehicle batteries.
The Biden administration previously imposed a 25% tariff on tungsten and other critical materials in an effort to reduce U.S. reliance on Chinese-controlled supply chains. Meanwhile, Almonty Industries, a Canada-based mining firm, has reopened a tungsten mine in South Korea, projected to meet 12% of global demand by 2027.
China also previously restricted tungsten exports late last year in response to U.S. sanctions on Chinese firms accused of supplying Russia with dual-use electronics.
For bismuth, China was the top supplier to the U.S. from 2019-2022, accounting for 68% of imports. The metal is widely used in pharmaceuticals, cosmetics, and industrial applications.
Other restricted materials are expected to have minimal impact on U.S. supply chains. Molybdenum powder, used in manufacturing, is primarily sourced from Peru, Mexico, and Chile. Indium, essential for TV and smartphone screens, is also supplied by South Korea, Japan, and Canada. Tellurium, used in solar panels and memory chips, is mostly sourced from Canada, Germany, the Philippines, and Japan.
According to a London-based commodities trader cited by *Mining Weekly*, China’s export curbs will have little effect on global markets due to the availability of alternative suppliers.
A spokesperson for China’s commerce ministry defended the restrictions, stating, “Implementing export controls on tungsten and related items is a common international practice. As a major global producer and exporter, China remains committed to fulfilling international obligations, including non-proliferation, in accordance with national security and interest considerations.”
Sean King, an Asia expert and vice president at Park Strategies, which advises tungsten mining firm Almonty Industries, commented: “Beijing’s latest critical minerals strike suggests Xi Jinping is playing targeted hardball. This should serve as a long-overdue wake-up call for the United States and its allies to secure alternative sources for essential materials.”
Chinese officials have reiterated that “there are no winners in a trade war” and have urged Washington to “meet China halfway.”
White House Press Secretary Karoline Leavitt told reporters Monday that Trump is expected to speak with Xi soon, though no specific timeline was provided.
