What it means for global tech supply chains

China has temporarily lifted export restrictions on several high-tech materials, including gallium, germanium, antimony and superhard substances, easing one of the most contentious measures in its trade relations with the United States. The decision follows a major trade agreement reached earlier this month between President Xi Jinping and US President Donald Trump in Busan, South Korea.

In a statement issued on Sunday, China’s Ministry of Commerce said it would suspend the second clause of its 2024 export control order – Announcement No 46 which had restricted shipments of key dual-use materials to the US. The suspension, effective from November 9, 2025, will remain in place until November 27, 2026, according to a report by Xinhua, China’s state media.

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The paused clause had banned exports of gallium, germanium, antimony and certain superhard materials, as well as imposed tighter reviews on graphite exports. The ministry clarified that the temporary suspension would only affect licensing and review procedures under this clause. However, the first clause of the same order which prohibits the export of dual-use items for US military users or military end-uses will remain fully in force.

Strategic materials critical for advanced industries

Gallium and germanium are essential for semiconductor manufacturing, fibre-optic networks and solar panels, while antimony is widely used in flame-retardants, batteries and defence applications. These materials are considered critical to high-technology industries and have been a focal point in the ongoing trade rivalry between Beijing and Washington.

The suspension means that Chinese exporters can now apply for licences to ship these materials to civilian buyers in the US under relaxed rules. Industry observers view this as a sign that both sides are seeking to rebuild commercial trust after years of tariff disputes and export control measures.

The decision follows a trade and economic agreement struck between China and the US during the Xi-Trump meeting in Busan earlier this month. According to a fact sheet released by the White House on November 1, China agreed to lift export controls on critical materials, end retaliatory tariffs and resume large-scale imports of US farm goods such as soybeans, sorghum and timber.

China also pledged to allow the resumption of operations at Nexperia’s facilities in the country and close investigations into American firms in the semiconductor sector. In return, the US committed to cut certain tariffs on Chinese imports by 10 per cent starting November 10, extend Section 301 tariff exemptions until November 2026, and pause retaliatory measures linked to maritime and shipbuilding probes for one year.

Foreign media reported that the Busan meeting marked a rare moment of cooperation between the two nations, setting the stage for a temporary cooling of trade tensions that have simmered since 2018.

While the suspension is seen as a goodwill gesture, Beijing has underlined that the measure is temporary and could be reversed if national security concerns arise. The Export Control Law enacted in 2024 remains in place, and any unauthorised transfer of Chinese dual-use goods to American entities continues to be punishable under domestic law. The move could ease pressure on global supply chains dependent on Chinese raw materials, especially for semiconductor and renewable energy manufacturing. However, both countries have retained significant control levers over each other’s markets, and the latest development may represent a pause rather than a full-scale reset in trade relations.