[News] China Restricts Exports of Five Key Metals: Their Role in Major Industries Explained

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After U.S. President Donald Trump’s 10% additional tariffs on Chinese goods came into effect, China announced on Tuesday the imposition of export controls on five metals.

According to a report from ijiwei, these metals play vital roles in key industries such as defense, clean energy, and more, with China holding a dominant share in their global exports. Below is an overview of these metals:

Tungsten

China has imposed restrictions on eight types of tungsten products and their manufacturing processes. The report mentions that Tungsten is an ultra-hard metal, second only to diamond in strength, and is primarily used in the production of ammunition, armor plates, and cutting tools.

According to ijiwei, about 60% of tungsten consumption in the U.S. is used to produce tungsten carbide, an extremely durable material widely applied in construction, metalworking, and oil and gas drilling.

China holds a dominant position in tungsten production and exports, accounting for over 80% of global supply in 2023, as highlighted in the report.

Other tungsten-producing countries include Vietnam, Russia, South Korea, and Spain. According to data from the U.S. Geological Survey (USGS), the U.S. has not conducted commercial tungsten mining since 2015.

Indium

China’s new restrictions target three indium-related products and their manufacturing technologies. Indium is a key component in smartphone screens and television displays, refined into indium tin oxide (ITO) for use in these applications. Notably, indium is also used in fiber optic technology. The expansion of 5G networks has driven increased demand for indium, as highlighted in the report.

According to USGS, China is the world’s largest producer of indium, accounting for 70% of global production. As of September 2024, one-quarter of U.S. indium imports came from China, as the report indicates.

Bismuth

China has imposed export restrictions on bismuth and various bismuth-containing compounds. Bismuth is used in soldering materials, alloys, metallurgical additives, pharmaceuticals, and atomic research, as noted in the report.

According to USGS, the U.S. ceased primary refined bismuth production in 1997 and has since been highly dependent on imports. As cited in the report, USGS data show that in 2024, China produced over 80% of the world’s approximately 13,000 tons of bismuth. Other major producers include South Korea and Laos.

Tellurium

China has imposed export restrictions on tellurium and various tellurium-containing compounds. According to ijiwei, tellurium is typically a byproduct of copper refining and is used in metallurgy, solar panels, memory chips, and other applications.

The USGS estimates that by 2024, China will produce approximately three-quarters of the world’s refined tellurium. Although the U.S. has two refineries that produce precursor tellurium copper, further processing must be done overseas. As a result, most tellurium-based products in the U.S. rely on imports, as highlighted by the report from ijiwei.

Molybdenum (Mo)

China’s new restrictions target the export of certain molybdenum powders used in missile components, as the report notes.

According to the ijiwei, molybdenum is primarily used to strengthen and harden steel alloys, making them more heat- and corrosion-resistant. It is also used in lubricants, pigments, and as a catalyst in the petroleum industry.

As cited in the report, USGS indicates that by 2024, China accounts for approximately 40% of global molybdenum production, while the U.S. contributes 12%.

In addition, based on Chinese customs data, the report highlights that China exported 287 tons of molybdenum powder in 2024, with about half of it shipped to Japan.

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