Amid the ongoing barred export of antimony metals used in batteries, chips, and fire retardants from China, the United States has opted for supplies from Thailand and Mexico. Media reports citing shipping records said that large quantities of antimony metal have entered the United States through Thailand and Mexico. However, China dominates the supply of antimony metals such as Gallium and Germanium used in telecommunications, semiconductors, and military technology. It was on December 3 that Beijing banned exports of these minerals to the U.S.
The sudden shift in trade is the result of a scarcity of critical minerals and China’s struggle to enforce its curbs as it battles with the U.S. for economic, military, and technological supremacy. Trade data has showcased that the United States has started sourcing its shipments through third-world countries. According to a Reuters report, multiple sources, including two executives from American companies, said they had received restricted minerals from China in recent months.
Mexico And Antimony Smelter
A report citing US customs data said that the US imported 3,384 metric tons of antimony oxides from Thailand and Mexico between December and April. They said this was more than the total from the previous three years combined. Thailand and Mexico have emerged as the top export markets for Chinese antimony this year. Consultancy firm RFC Ambrian said that both Thailand and Mexico have only one antimony smelter each. Mexico’s smelter began operations only in April this year. Additionally, Mexico does not mine any significant amount of antimony, suggesting that the metal processed there is likely imported from other countries.
US Law And Buyers
US law does not bar American Buyers from purchasing Chinese-origin antimony, gallium, or Germanium. However, Chinese firms are ready to ship the minerals to countries other than the US if they can acquire a license.
American buyers have managed to secure shipments by sourcing supplies from Asian countries. In this process, buying agents in China acquire the material from producers, which is then packaged and shipped by an Asian company, often routed through another Asian country.
The Reuters report further investigates the trade ties the US has with the Thailand-based subsidiary of a Chinese Antimony producer. Between December and May, around 3,366 tons of antimony products were shipped from Thailand to the U.S. by Unipet Industries, a Thailand-based company owned by a Chinese antimony producer.
China Launches Campaign
In May, China began a crackdown on the illegal trade and transport of key minerals. Those who violate the rules could face fines or be banned from exporting in the future. In more serious cases, such actions could be classified and punished as smuggling. The law will apply to Chinese firms even when transactions take place abroad. Chinese authorities can prosecute sellers who fail to conduct sufficient due diligence to determine the end user. The three minerals were already subject to export licensing controls when China banned exports to the U.S. According to Chinese customs data, exports of antimony and germanium are still below the levels seen before the restrictions.
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