China's Strategic Export Control on Critical Metals: Impact and Implications

China has announced export controls on five strategic metals, targeting defense, clean energy, and other industries. This move follows a new U.S. tariff on Chinese goods. The targeted metals—tungsten, indium, bismuth, tellurium, and molybdenum—are crucial in various sectors, and China is a dominant global producer for most.

In a strategic move, China on Tuesday announced export controls on five critical metals shortly after the U.S. implemented an additional 10% tariff on Chinese imports. The restrictions target tungsten, indium, bismuth, tellurium, and molybdenum—metals essential in defense, clean energy, and technology industries.

Tungsten, primarily used in tools and military hardware, is largely produced by China, which accounts for over 80% of global supply. Indium, crucial for phone screens and 5G tech, sees China producing 70% of its requirements. Meanwhile, bismuth and tellurium are essential for electronics and solar panels, with China's production dominance exceeding 80%.

Molybdenum, vital for strengthening steel, has a new export restriction affecting missile parts. China's strategic grip on these materials continues to challenge the global market, as nations dependent on these imports may need to explore alternative suppliers or technologies.

(With inputs from agencies.)