From Bloomberg, February 4:
- Beijing also puts curbs on molybdenum, tellurium and indium
- China is top producer of the metals used in defense, aviation
China put export controls on tungsten and other niche metals used in the electronics, aviation and defense industries as it retaliated in a targeted way to US tariffs.
As well as tungsten — which is known for its remarkable density and high melting point and is most commonly used in armor-piercing missiles — Beijing imposed export curbs on molybdenum, tellurium, bismuth and indium on Tuesday. The announcement came immediately after President Trump fired the opening salvo in the trade war, hitting all US imports from China with a blanket 10% tariff.
China produces around 80% of the world’s tungsten and bismuth, and is also the No. 1 supplier of the other metals. Its response suggests it will take a more calibrated approach in dealing with Washington, targeting materials with military applications and seeking to maximize its impact by focusing on commodities where it has the most leverage.
“The recent announcement is surprising,” said Luke Adriaans, research analyst at consultancy Project Blue. “The industries most likely to be affected include the defense sector, where tungsten is a crucial material for munitions manufacturing.”....
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