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Beijing's curbs follow latest U.S. limits on Chinese chip

sector

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Exports of gallium, germanium to U.S. already stalled

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Antimony prices surge this year as China stifles exports

(Adds comments from analyst in paragraphs 9-10, trader in

paragraph 12, background)

By Amy Lv and Tony Munroe

Dec 3 (Reuters) - China has banned exports to the U.S.

of items related to the minerals gallium, germanium and antimony

that have potential military applications, its commerce ministry

said on Tuesday, a day after Washington's latest crackdown on

China's chip sector.

Beijing's directive on so-called dual-use items with both

military and civilian use, which cites national security

concerns and takes immediate effect, also requires stricter

review of end-usage for graphite items shipped to the U.S.

"In principle, the export of gallium, germanium, antimony,

and superhard materials to the United States shall not be

permitted," the ministry said.

The curbs strengthen enforcement of existing limits on

exports of the critical minerals that Beijing began rolling out

last year, but apply only to the U.S., in the latest escalation

of trade tensions between the world's two largest economies

ahead of President-elect Donald Trump taking office.

However, there have been no Chinese shipments of wrought and

unwrought germanium or gallium to the U.S. this year through

October, although it was the fourth and fifth-largest market for

the minerals, respectively, a year earlier, Chinese customs data

show.

Gallium and germanium are used in semiconductors, while

germanium is also used in infrared technology, fibre optic

cables and solar cells.

Similarly, China's overall October shipments of antimony

products plunged by 97% from September after Beijing's move to

limit its exports took effect.

China accounted last year for 48% of globally mined

antimony, which is used in ammunition, infrared missiles,

nuclear weapons and night vision goggles, as well as in

batteries and photovoltaic equipment.

This year, China has accounted for 59.2% of refined

germanium output and 98.8% of refined gallium production,

according to consultancy Project Blue.

"The move is a considerable escalation of tensions in supply

chains where access to raw material units is already tight in

the West," said Project Blue co-founder Jack Bedder.

Prices of antimony trioxide in Rotterdam had soared by 228%

since the beginning of the year to $39,000 a metric ton on Nov.

28, data from information provider Argus showed.

"Everyone will dig in their backyard to find antimony. Many

countries will try to find antimony deposits," said a minor

metals trader in Europe, declining to be named.

China's announcement comes after the U.S. launched its third

crackdown in three years on China's semiconductor industry on

Monday, curbing exports to 140 companies, including chip

equipment maker Naura Technology Group.

Trump, whose first White House term was marked by a bitter

trade war with China, has said he will implement 10% tariffs on

Chinese goods and threatened 60% tariffs on Chinese imports

during his presidential campaign.