US companies avoid restrictions to get China’s minerals

(MENAFN) According to a Reuters report published Wednesday, American companies are bypassing China’s export restrictions on key minerals by rerouting shipments through third-party nations such as Thailand and Mexico.

In December 2024, Beijing imposed a ban on the export of antimony, gallium, and germanium to the U.S., in response to Washington’s intensified efforts to restrict China’s semiconductor industry. The embargo has disrupted several critical American industries, including defense, tech, and renewable energy, which rely heavily on these materials.

To maintain supply chains, U.S. buyers have turned to indirect channels. Reuters analyzed customs data showing a dramatic increase in U.S. imports of antimony oxide from Mexico and Thailand between December and April — surpassing the total from the past three years combined. At the same time, Chinese export records indicated that these two countries became leading destinations for antimony shipments in 2025, despite their previously minor roles.

Industry insiders confirmed the workaround. Two U.S. executives told Reuters they were able to secure banned Chinese-origin minerals by purchasing them through intermediaries in recent months.

China remains the primary global supplier of antimony, gallium, and germanium. Before the December ban, it accounted for approximately 72% of U.S. antimony imports, 19% of gallium, and 12% of germanium.

The mineral export restrictions are part of a larger trade confrontation between the U.S. and China that intensified in early 2024. The Biden administration introduced broad controls targeting high-tech exports, prompting China to respond with retaliatory tariffs. By spring, tariff rates reached as high as 145% from the U.S. and 125% from China.

In May, after negotiations in Geneva, both countries agreed to halt further tariff hikes. By the end of June, they reached a limited trade agreement focused on resuming China’s rare-earth exports to the U.S., which are vital to sectors like electronics, defense, and green energy.

However, the agreement does not cover antimony, gallium, or germanium, which are considered critical minerals rather than rare earth elements.

U.S. officials have emphasized the importance of both parties following through on the deal. Beijing has similarly urged Washington to uphold the consensus reached during a June call between Presidents Trump and Xi Jinping and to work toward improved cooperation through continued dialogue.

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