US and European countries are increasingly adopting trade protectionist policies towards China, while also expressing concern about Chinese countermeasures and tightening control on key mineral export policies.
According to Reuters report on June 19th, some Western buyers stated that China is tightening regulations on the export of metal indium. They are concerned that this rare metal used in next-generation data centers may be included in China's export control measures.
Indium is a silver-white soft metal with strong plasticity and good ductility. It has a low melting point and high boiling point, and it is highly transparent to light. It can be used in the manufacture of low-melting alloys, bearing alloys, semiconductors, and electric light sources. Indium is an essential rare resource in high-tech fields such as electronic products, solar cells, national defense and military applications, aerospace, nuclear industry, and modern information industries.
Currently, the main application fields for indium are in the flat panel display industry, including high-performance indium tin oxide (ITO) targets; secondly, it is used in the semiconductor industry, solder and alloys, as well as solar power generation.
According to data cited by Reuters, currently, China produces nearly 70% of the world's indium.
Metallic Indium – Reference Images
According to reports, in February last year, China listed indium phosphide on its export control list. Although metal indium is not currently on the export control list, two buyers told Reuters that Chinese customs have become more stringent in their inspections of purchases involving indium phosphide.
This year, for the first time, European buyers were required to disclose their final user information, including their location.
A major buyer from North America said that the approval process in China has extended from that day to several days. They believe this is due to stricter document review, and described the situation as 'tense'. However, the buyer stated that they were not required to provide any additional information by customs.
Other two buyers told Reuters that the additional review intensity was not uniform. They heard of additional reviews, but they themselves did not encounter them.
So far, Reuters has not found any instances where cargo transportation has been prevented.
Nevertheless, there are concerns within Western industries that this could be a precursor to tighter regulations or requirements for disclosing the final users. They also argue that China and other countries with export control systems could use this as a means to control global supply chains and key bottlenecks.
In addition, indium has been identified as a potential weakness for the United States. Earlier this year, the U.S. Defense Logistics Agency issued a proposal requesting the storage of up to 403 tons of the metal indium over three years.
Another North American buyer indicated that they suspect this proposal is a "sign of restriction or complete prohibition of exports."
In recent years, Western countries have frequently exaggerated the "threat posed by China," while advocating measures to reduce risks. At the same time, they express concerns about China cutting off supplies in the field of critical minerals.
Recently, the Group of Seven (G7) issued a joint statement. Foreign media reported that although the G7 statement did not explicitly mention China, it focused on reducing dependence on China in terms of critical minerals and rare earth resources.
On June 18, Foreign Ministry spokesperson Lin Jian stated that China's position on maintaining the stability and security of the global supply chain for critical minerals remains unchanged. At the same time, all parties have a responsibility to play a constructive role in this regard. China's efforts to standardize and improve its export control system are in line with international practices. The aim is to better safeguard world peace and regional stability, and to fulfill international obligations related to non-proliferation.
Lin Jian emphasized that China urges the G7 to strictly abide by the principles of a market economy and international economic and trade rules, and to stop using 'clique' rules to undermine the international economic and trade order.
