The export controls on tungsten and tellurium in China: key minerals have become a new "battlefield" in the game
On February 4, the Ministry of Commerce of China and the General Administration of Customs jointly issued a notice implementing export controls on tungsten, tellurium, bismuth, molybdenum, and indium-related items, imposing export controls on 25 rare metal products and their technologies, including ammonium paratungstate. Regarding the reasons for the latest export controls, the announcement published on the Ministry of Commerce's official website mentioned, "to safeguard national security and interests, and to fulfill international obligations such as non-proliferation."
It is worth noting that this is another significant action by China in the field of critical resources, following the controls on gallium, germanium, and graphite in 2023, and on antimony in 2024.
Specifically, tungsten, known as the "industrial teeth," has an extremely high melting point (3422°C) and hardness, making it a core material for aerospace engines, armor-piercing projectiles, and nuclear reactor shielding materials. The export controls on ammonium paratungstate, tungsten oxide, and high-purity tungsten alloys are directly related to national defense and high-end manufacturing sectors.
Tellurium is a rare colored metal that had limited applications in its early days. During World War II, tellurium was used as a vulcanizing agent in the production of natural rubber. It was not until the late 1950s that tellurium became an element of industrial practical value. Tellurium and its compounds have wide applications, and in recent years, cadmium telluride (CdTe) has become a key material for thin-film solar cells, achieving a photoelectric conversion efficiency of up to 22%. Additionally, tellurium's applications in infrared detectors and semiconductor substrates make it an important support for new energy and information technology.
Bismuth is globally recognized as a relatively safe "green" metal element. As a heavy metal, bismuth has very low toxicity and is a dense material, being one of the few materials that expand when cooled and contract when heated. Bismuth and its compounds also exhibit good optical and photoelectric responses. Due to a series of excellent properties, bismuth is widely used, and in recent years, its applications in high-tech fields such as catalysis, solar cells, 3D printing, flexible wearables, and integrated diagnosis and treatment have gradually emerged. For example, bismuth germanate (BGO) crystals are core components of high-end medical CT equipment and particle detectors, while compounds like triphenyl bismuth hold an irreplaceable position in organic synthesis catalysts.
Molybdenum is a rare metal and an important non-renewable strategic resource. It does not exist in metallic form under natural conditions and is mainly found in nature in the form of molybdenite. Molybdenum is widely used in steel metallurgy, agricultural fertilizers, electrical chemicals, and aerospace due to its unique properties. With the rapid development of technology, the application fields of molybdenum have further expanded to superalloys and military industries, continuously enhancing its strategic position. For instance, high-purity molybdenum powder is an essential material for high-temperature components such as missile engine nozzles and nuclear fuel cladding; molybdenum target materials are one of the key materials in the semiconductor manufacturing process.
Indium has been listed as a critical mineral by countries such as China, the European Union, the United States, and Japan. Currently, the end products of indium mainly include indium tin oxide (ITO) targets, photovoltaic films, computer chips, semiconductor materials, solders, and alloys, among which ITO targets hold the largest market share, accounting for 70% of global indium consumption. Furthermore, there are currently no other metals that can replace indium in the aforementioned fields. Therefore, indium is one of the irreplaceable raw materials in the fourth technological revolution of today's world, possessing extremely important strategic value.
The commonality of these metals lies in their dual role as both "lubricants" for the upgrading of traditional industries and "catalysts" for new productive forces such as new energy, semiconductors, and artificial intelligence, with a strategic position comparable to "oil of the 21st century."
A spokesperson for the Ministry of Commerce stated in response to inquiries regarding the implementation of export controls on tungsten and other items that such measures are a common international practice. As a major producer and exporter of tungsten and related items globally, China has long adhered to its international obligations regarding non-proliferation and, in accordance with the need to safeguard national security and interests, has legally implemented export controls on specific related items.
The spokesperson further indicated that the recent addition of related items reflects a regulatory philosophy that balances development and security, which is conducive to better safeguarding national security and interests, fulfilling international obligations regarding non-proliferation, and ensuring the safety and stability of global industrial and supply chains. Exports that comply with relevant regulations will be permitted.
Challenges and opportunities amid global industrial chain fluctuations
China is the world's largest producer of strategic metals such as tungsten and indium, possessing a controlling advantage in upstream resources.
For instance, regarding tungsten, an article published in 2019 by Professor Zhao Zhongwei and others from the School of Metallurgy and Environment at Central South University pointed out that since the founding of New China 70 years ago, the tungsten metallurgy in our country has undergone a transformation from non-existence to existence and from weakness to strength. Especially in the past 40 years of reform and opening up, the theory and technology of tungsten extraction and metallurgy in our country have continuously developed, achieving significant progress in processing low-grade complex resources and energy-saving and environmentally friendly production processes.
Tungsten is relatively scarce in the earth's crust, with over 20 types of tungsten minerals discovered, of which only wolframite and scheelite have smelting value. The world's tungsten resources are mainly concentrated in China, Canada, the United States, and Russia, with China being the primary country for tungsten reserves and production. According to statistics from the United States Geological Survey (USGS), the global tungsten reserves in 2016 were 3.1 million tons, of which China's reserves were 1.9 million tons, accounting for 61% of the world's total reserves, and China's tungsten production accounted for 82% of the global total.
Similarly, regarding indium, Wang Denghong, deputy director and researcher at the Institute of Mineral Resources of the Chinese Academy of Geological Sciences, pointed out in a 2023 article that based on estimates of 1,512 known indium deposits worldwide, the global indium resource amount exceeds 356,000 tons. Countries with significant indium resources include China, Peru, the United States, Canada, and Russia, with these countries accounting for over 80% of the total global indium reserves.
Among them, our country's indium reserves rank first in the world, and it is also the largest producer of primary indium (with a purity of ≥99.995% directly sourced from primary ores) and the largest exporter of metallic indium globally. The identified indium resource amount is nearly 20,000 tons, mainly distributed across 19 provinces (regions) including Yunnan, Guangxi, Inner Mongolia, and Hunan. Regarding the export control of tungsten and other related items, CITIC Construction Investment recently pointed out that the global political and economic situation is becoming increasingly turbulent, the stable and efficient global supply chain system is loosening, the trend of de-globalization has emerged, trade protectionism is on the rise, and the frequency of measures such as tariffs is increasing. In this context, the mastery of scarce resources has become important, with key strategic mineral resources becoming a new "battleground" for countries' competition. In 2022, 22 experts from institutions such as the China Geological Survey, the Ministry of Natural Resources' Mineral Exploration Technical Guidance Center, and China University of Geosciences jointly published a comprehensive review. This review article also pointed out that key minerals are those that are crucial for economic and social development and national security, and due to supply shortages, they pose significant risks or have certain advantages that strongly influence global supply. The current international trade disputes have expanded from the economic and technological fields to the mineral resource sector, and the changes in the world situation have posed new challenges to China's mineral resource security while also bringing new opportunities.