China's Ban on Key High-Tech Materials Could Have Far-Reaching Impacts on Industries and the Economy

In response to Washington's expansion of export controls that includes a wide range of essential materials used in products such as smartphones, electric vehicles, radar systems, and tomography scanners, China has imposed a ban on the export of these materials. Both sides claim their controls are justified by national security concerns and accuse each other of "weaponizing" trade. Analysts suggest that the latest restrictions could have a broad impact on production across many sectors and supply chains.

In a report regarding Beijing's decision, Gracelin Baskaran and Meredith Schwartz from the Center for Strategic and International Studies wrote, "Critical mineral security is now fundamentally linked to the escalating technology trade war." The ability of U.S. industries to compensate for the loss of access to strategically important materials, equipment, and components will be crucial. This situation could mark a turning point in the trade conflict between the two major economies, especially given the expected intensification of hostilities since the election of President Donald Trump, who promised to raise tariffs on imports of Chinese-origin products.