In a significant escalation of trade tensions, China announced on Tuesday that it would ban the export of several key materials, including gallium, germanium, and antimony, to the United States. These materials are vital for high-tech applications, including advanced electronics and military technologies. The Chinese Commerce Ministry's decision follows a recent expansion of the U.S. “entity list,” which now includes 140 Chinese companies—many based in China, though some are Chinese-owned businesses in Japan, South Korea, and Singapore. These companies are subject to U.S. export controls, which restrict their access to critical computer chip-making equipment and high-bandwidth memory chips.

The new Chinese export restrictions come after Beijing had previously required exporters to obtain licenses for sending such strategically important materials, such as gallium, to the U.S. However, this recent move intensifies the ongoing trade conflict between the two countries. China’s Commerce Ministry stated that the export ban was a necessary measure to protect China’s “rights and interests” in response to Washington's actions, which they view as harmful to Chinese businesses and technological development.

The ban is expected to have significant implications for the global tech industry, as gallium, germanium, and other materials are essential for the production of semiconductors and advanced technology products. This latest action adds to the growing list of trade and technology-related disputes between the U.S. and China, further complicating their economic relationship.