China Slashes Exports of Key Tech Minerals Gallium and Germanium
In a strategic move echoing rising global tech tensions, China has significantly reduced its exports of gallium and germanium — two minerals crucial to semiconductors and defense technologies. According to the latest Chinese customs data, gallium exports plummeted by 64% and germanium exports by 58% in the first half of 2025 compared to the same period last year.
Why Are Gallium and Germanium Important?
Gallium and germanium are essential for producing high-speed computer chips, fiber optics, solar panels, and military-grade infrared optics. Their unique electrical and optical properties make them critical to industries ranging from telecommunications to defense. China dominates global production of both materials, accounting for more than 80% of the world’s gallium and over 60% of germanium supply.
Export Controls Tightened in 2023
In mid-2023, China imposed export controls on gallium and germanium, requiring exporters to obtain special licenses. This move was widely interpreted as a countermeasure to US-led restrictions on advanced semiconductor equipment and technology sales to Chinese firms. Since then, China’s monthly exports of the two metals have shown a consistent downward trend.
Rare Earths Buck the Trend
Interestingly, while gallium and germanium exports are shrinking, China’s rare earth mineral exports saw a rebound. In June 2025 alone, rare earth exports rose by 7.4% compared to May, reaching 4,820 tons. Rare earths are vital for manufacturing magnets used in electric vehicles, wind turbines, and smartphones.
Global Supply Chain Ripple Effects
The sharp decline in gallium and germanium shipments has triggered concerns in the US, Europe, and Japan. These regions heavily depend on Chinese exports for advanced manufacturing. Efforts to diversify supply chains are underway, with the EU investing in mining and refining capabilities and the US increasing stockpiles of strategic materials.
Market Reactions and Price Movements
Prices of gallium and germanium have remained volatile throughout 2025 due to the restricted supply. Analysts note that while some manufacturers have turned to alternative sources like Kazakhstan and Germany, the global market remains largely dependent on Chinese output, putting long-term supply security in question.
Looking Ahead: Strategic Implications
China’s tightening grip over critical mineral exports signals a broader strategy in the global tech rivalry. As nations race to secure their own supplies of rare and strategic materials, the importance of resource independence is becoming increasingly evident. With geopolitical tensions influencing trade and technology, gallium and germanium are now more than just minerals—they’re bargaining chips in a larger global chessboard.
Quick Trivia
- Q: Which two critical minerals did China reduce exports of in 2025?
A: Gallium and Germanium - Q: What are these minerals used for?
A: Semiconductors, fiber optics, solar cells, and defense systems - Q: Which mineral export from China increased in June 2025?
A: Rare Earths - Q: When did China introduce export controls on these minerals?
A: Mid-2023
Source: Hindustan Times