China has escalated trade tensions with the U.S. by banning exports of critical minerals like gallium and germanium, vital for semiconductors, defense, and electric vehicles. While the immediate economic impact is limited due to earlier restrictions, the move highlights China’s dominance in global supply chains, especially for graphite, essential for EV batteries. This retaliation follows aggressive U.S. export controls aimed at curbing China’s technological and military growth, prompting both nations to prepare for further measures. The U.S. is now incentivized to diversify supply chains and develop domestic alternatives, while China retains leverage through its control of other critical resources. The ongoing trade war signals continued economic and geopolitical escalation, with significant risks for both nations and no clear path to resolution. Continue here.
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