Key facts
- China placed 10 U.S. entities on an export control list.
- MP Materials and USA Rare Earth are among the U.S. entities affected by China's export controls.
- China stated its export controls are retaliation for U.S. actions against Chinese firms.
- China aims to safeguard national security with its export controls.
- China is intensifying scrutiny over indium exports.
- Indium is a metal crucial for AI data centers.
- Buyers are concerned that indium exports could face further controls.
- Increased customs checks and end-user disclosures for indium are being reported.
- China's intervention helped mitigate aluminum's wartime shock.
- Mideast producers used alternative transport, including trucks and dark transits, for aluminum.
China has placed 10 U.S. entities, including rare earth producers MP Materials and USA Rare Earth, on an export control list. Beijing stated the move is in retaliation for U.S. actions against Chinese firms and is intended to safeguard national security. This action follows a pattern of China using export controls as a tool in geopolitical disputes.
In parallel, China is intensifying its scrutiny over indium exports. Indium is a critical metal for the production of displays and semiconductors used in AI data centers. Buyers are concerned that this increased scrutiny, which involves enhanced customs checks and demands for end-user disclosures, could lead to further export controls, even though indium is not yet on an official control list.
Furthermore, China's intervention has played a role in mitigating the impact of wartime shocks on the aluminum market. Middle Eastern aluminum producers have adapted by utilizing alternative transport methods, such as trucks and "dark transits" (shipments that avoid official tracking), to move their products amidst supply chain disruptions.