China said it would restrict exports of five metals used in defense, clean energy and other industries in response to U.S. tariffs, reported Reuters. An additional 10% tariff on Chinese imports into the U.S. came into effect last week.
The new restrictions stop short of outright export bans and are narrowly targeted in some cases, noted the news agency.
Licenses will now be required to export 20 tungsten, tellurium, bismuth, indium and molybdenum-related products to “safeguard national security interests,” according to the Commerce Ministry.
Markets had speculated China would expand export controls ever since its decision last December to ban exports to the U.S. of antimony and other materials, according to Jessica Fung, head of Consulting at Project Blue.
The move will likely force up prices outside China, she added.
Source: Reuters