In a swift and forceful response to new U.S. export restrictions, China announced a ban on Tuesday that immediately halts the export of essential materials used in both civilian and military applications to the United States. This move comes one day after the Biden administration unveiled tighter measures to limit China’s access to advanced semiconductor technology.

China’s Ministry of Commerce stated that it will no longer allow the export of gallium, germanium, antimony, and superhard materials to the U.S. This ban covers "dual-use items"- materials with applications in both military and civilian sectors. These materials are critical to high-tech industries, including electronics, defense, and renewable energy technologies. The ministry emphasized that these items are crucial for manufacturing and military applications, and the new measures aim to protect national security.

"In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted," the statement read.

The announcement followed the U.S. government's decision to impose restrictions on the export of semiconductor-related equipment to China, including 24 types of chipmaking tools and key software necessary for artificial intelligence (AI) development. These new curbs are seen as a direct attempt to halt China's technological and military advancements, particularly in AI and semiconductor manufacturing.

China’s Ministry of Commerce further stated that shipments of graphite—used in batteries, fuel cells, and critical defense and aerospace technologies—will now undergo stringent reviews, potentially slowing U.S. access to this vital material. China remains the dominant global supplier of graphite, accounting for approximately 77% of the world's production.

The ban on these critical materials was expected, as analysts had warned that China could retaliate against U.S. trade restrictions. The move is also seen as a direct challenge to President-elect Donald Trump, who has pledged to escalate tariffs on Chinese goods once he takes office. On Tuesday, Chinese industry associations issued a coordinated warning to Chinese firms, advising them that purchasing U.S. chips is now "no longer safe," which could have serious consequences for U.S. semiconductor companies like Nvidia, AMD, and Intel.

The U.S.-China tech rivalry has escalated dramatically in recent years, with both countries using their economic leverage in the battle for dominance in key industries. While China controls a significant portion of the global supply of critical materials like gallium and germanium, the U.S. remains a leader in semiconductor technology. The ongoing restrictions and retaliations threaten to further disrupt global supply chains, potentially causing price increases for consumer electronics such as laptops, smartphones, and game consoles.

China’s retaliatory ban also signals deeper frustrations with U.S. policies that target its technological growth. A spokesperson for China’s Ministry of Commerce said that the U.S. had "overextended the concept of national security" and had "unreasonably restricted the export of products to China." The ministry reiterated that the export controls are in line with China's laws and international obligations to prevent the proliferation of military technologies.