Practical: AI & Business News China Just Flipped the Switch: Beijing Lifts Its Metal Ban That Could Reshape America’s AI and Chip Supply Chain
Nov 10, 2025
China has lifted its export ban on essential metals like gallium, germanium, and antimony, crucial for semiconductors and defense tech. This surprise move could reshape the U.S. supply chain, easing pressures on chipmakers. The discussion links the ban to U.S. restrictions on advanced AI tech and highlights China's need to stabilize trade relationships. As global supply chains shift and alternate sources emerge, the implications for AI and green technology are profound, signaling a new era where materials will determine technological leadership.
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China's Export Pause Shifts Global Leverage
- China suspended export restrictions on gallium, germanium, and antimony after last year's bans disrupted global supply chains.
- Their dominance (≈90% gallium, ≈60% germanium) gave them huge leverage that quickly spurred buyers to diversify.
Diversification Undermined China's Monopoly
- Diversification accelerated after the bans: Canada, Australia, the US, and the EU funded new projects for these materials.
- This erosion of China's monopoly reduced Beijing's bargaining power in tech supply chains.
Materials Directly Limit AI And Defense Scaling
- Gallium and germanium are critical for advanced chips, impacting AI model scaling and chip costs.
- NVIDIA and AMD warned costs could rise up to ~20%, and military production for radar and satellites was also at risk.