China is going to react to the tariffs and proposed tariffs levied against them. Last time they stopped purchasing agricultural products from the U.S., and that is likely to happen again. And they aren't waiting for Trump to take office. They have banned the export of key minerals to this country.
China has banned exports to the United States of items related to the minerals gallium, germanium and antimony that have potential military applications, it said on Tuesday.
A commerce ministry directive on dual-use items with both military and civilian applications cited national security concerns. The order, which takes immediate effect, also requires stricter review of end-usage for graphite items shipped to the U.S..
"In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," the commerce ministry said. . . .
Gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fiber optic cables and solar cells.Similarly, China's overall October shipments of antimony products plunged by 97% from September after Beijing's move to limit its exports took effect.China accounted last year for 48% of globally mined antimony, which is used in ammunition, infrared missiles, nuclear weapons and night-vision goggles, as well as in batteries and photovoltaic equipment.This year, China has accounted for 59.2% of refined germanium output and 98.8% of refined gallium production, according to consultancy Project Blue."The move is a considerable escalation of tensions in supply chains where access to raw material units is already tight in the West," said Project Blue co-founder Jack Bedder.
