US circumvents China's critical minerals export ban, leading to surge in imports

Unusually high amounts of antimony are flowing into the U.S. from Thailand and Mexico after China stopped exports, affecting the supply chain for critical minerals like antimony, gallium, and germanium. The U.S. imported 3,834 metric tons of antimony oxides in just a few months, more than the previous three years combined.

China’s dominance in critical minerals has led to a scramble for resources as trade flows shift through third countries. Chinese companies are finding creative ways to bypass regulations, leading to increased imports of antimony, gallium, and germanium into the U.S. at higher prices.

Thailand and Mexico have become top export markets for Chinese antimony, despite limited mining capabilities. Companies are utilizing workarounds like false labeling and transshipment to continue the flow of minerals, risking fines and bans on exports from Chinese authorities.

China faces challenges in enforcing export restrictions on critical minerals, as overseas entities collaborate with domestic firms to evade regulations. Prices for gallium, germanium, and antimony have surged due to shortages, making the trade lucrative despite legal risks for offenders.

The U.S. Commerce Department, Thailand’s commerce ministry, and Mexico’s economy ministry have not responded to inquiries about the shifting trade flows. Chinese authorities have launched a campaign against transshipment and smuggling of critical minerals, aiming to crack down on violators with fines, export bans, and potential jail terms.

Read more at Yahoo Finance.: How US buyers of critical minerals bypass China’s export ban