China Gallium Export Ban

What Are China's Gallium Export Controls?

China's gallium export controls are licensing requirements and outright prohibitions issued by MOFCOM under the Export Control Law (2020) and the Dual-Use Items Export Control Regulations (2021). These controls require Chinese exporters to obtain a government license before shipping gallium metal, gallium compounds, or - since January 2025 - gallium extraction technologies to any foreign buyer.

China classifies gallium as a dual-use item: it has civilian applications (semiconductors, LEDs, solar cells) and military applications (radar systems, electronic warfare, satellite equipment). As of January 2025, five categories of gallium-related items fall under MOFCOM export controls.

Controls are administered by MOFCOM's Department of Industry, Security, and Import and Export Control. Exporters apply for licenses per shipment, and MOFCOM retains authority to approve, deny, or revoke licenses based on end-user, end-use, and destination country.

When Did China First Impose Gallium Export Restrictions?

China announced gallium export controls on July 3, 2023, effective August 1, 2023. These controls required all exporters to apply for dual-use licenses before shipping gallium. This was the first time China formally restricted gallium exports - timed as a direct response to US semiconductor export controls targeting Chinese chipmakers introduced in October 2022 and expanded through 2023.

Full Escalation Timeline: August 2023 to November 2025

Each escalation step added new item categories, tightened geographic targeting, or expanded enforcement authority - showing a coordinated, multi-year strategy rather than reactive policy.

How Much Gallium Does China Produce, and Why Does That Matter?

China produces 98-99% of the world's primary low-purity gallium. Global high-purity refined gallium production totaled approximately 320,000 kg in 2024. The United States produces zero primary gallium commercially and sources 100% of its gallium supply from imports, with approximately 95% of historical imports coming from China.

Global Gallium Production by Country (2024, USGS Estimates)

Gallium forms as a byproduct of aluminum refining from bauxite ore. China refines approximately 55% of the world's aluminum - the feedstock that generates roughly 80% of extractable gallium. China's position in gallium supply is structural: it is embedded in the global aluminum refining chain, not a product of temporary market conditions.

World primary gallium production capacity stands at an estimated 340,000 kg/year. Secondary (recycled) production capacity adds an estimated 280,000 kg/year globally. China controls the majority of both.

What Is the Price Impact of China's Gallium Export Controls?

Gallium spot prices in Rotterdam rose 186% between June 2023 ($240/kg) and the May 2025 peak ($687/kg). The December 2024 US-specific prohibition drove exports to near-zero throughout 2025, producing the largest single-year price gain since controls began: +83.16% in 2025 alone. Chinese domestic prices followed a separate trajectory, rising to approximately $420/kg by October 2024.

Gallium Spot Price History

Annual Price Performance Summary

Which Industries Are Most Exposed to China's Gallium Export Controls?

Semiconductors account for approximately 95% of global gallium demand. Gallium arsenide (GaAs) and gallium nitride (GaN) are materials for chips that process radio frequency signals, high-speed data, and power conversion in applications ranging from 5G base stations to electric vehicles. Military radar, electronic warfare systems, and satellite communications also depend on gallium-based semiconductors.

How Did the December 2024 US-Specific Ban Differ from August 2023 Controls?

The August 2023 controls applied globally and created a licensing process - applications could be submitted and, in some cases, approved. The December 2024 MOFCOM Announcement No. 46 applied only to the United States and established a blanket rule: license applications for US-bound gallium shipments would not be approved "in principle." August 2023 slowed exports. December 2024 stopped them.

The January 2, 2025 extraction technology amendment closed a specific loophole: even if buyers sourced physical gallium from non-Chinese producers, they could not legally obtain the Chinese processing methods that make gallium production cost-efficient. Non-Chinese gallium production costs run an estimated 3-5x higher than Chinese production costs. By restricting extraction technology exports, China preserved its cost advantage even in a partially diversified supply market.

What Enforcement Actions Did China Deploy in 2025?

China launched a coordinated anti-smuggling crackdown in May 2025. China's State Export Control Work Coordination Mechanism Office convened over 10 central ministries - including MOFCOM and the Ministry of State Security (MSS) - alongside provincial and local officials to shut down transshipment workarounds for restricted minerals.

Transshipment routes through Hong Kong and Singapore were the explicit targets. Both territories had served as intermediary points that obscured the ultimate US destination of some shipments.

What Is the Current Status of China's Gallium Export Ban in 2026?

As of March 2026, China's ban on gallium exports to the United States is suspended until November 27, 2026. MOFCOM announced this suspension on November 9, 2025, after a US-China trade truce following a presidential summit on November 1, 2025. US-bound gallium shipments revert to standard dual-use licensing rules - meaning exports require MOFCOM approval, but applications are no longer denied in principle.

Export Control Status by Item (March 2026)

How Is the United States Responding to China's Gallium Export Controls?

The United States produces zero primary gallium commercially and maintains no gallium reserve in the National Defense Stockpile as of early 2026. The US government response consists of early-stage research and production initiatives - none of which are expected to produce meaningful domestic gallium supply before 2027. The supply gap between US annual consumption (an estimated 40-50 tonnes) and available non-Chinese supply remains wide.

Kazakhstan's targeted output of 15 tonnes per year represents approximately 30-37% of US annual gallium demand - if achieved on schedule. All other non-Chinese initiatives listed above are in pilot or pre-commercial phases. No announced program covers the full US demand gap within 2026.

The US does not currently have a government gallium stockpile. Gallium is not listed in the Defense Logistics Agency's Annual Materials Plan. The $12 billion critical minerals stockpile was announced as a concept, with gallium identified as a priority mineral - but no gallium purchases have been confirmed as of March 2026.

What Happens If China Re-Activates the Ban After November 2026?

If China re-activates the US export prohibition after November 27, 2026, the United States faces a repeat supply crisis with no domestic production buffer and no national stockpile. Gallium prices would return to or exceed the May 2025 peak of $687/kg. Semiconductor manufacturers, 5G equipment producers, defense contractors, and EV powertrain suppliers would face the same sourcing constraints as 2025 - but with higher strategic exposure given expanded GaN adoption in defense and automotive sectors.

Conditions That Could Trigger Re-Activation

China's Gallium Export Controls: Data Summary