Growth Dragons Weekly: Antimony Prices Skyrocket Amid China’s Export Curbs; IPO Wave - Mao Geping, WeDoctor, Xuanzhu Biopharm
What happened in China this week:
China’s Export Control a Tit-For-Tat Response to US Chip Restrictions – Sent Gallium, Germanium, and Antimony Prices Soaring
China’s Industries Continue to Expand Despite Rising Trade Tensions
China EV Battery Companies Expand Global Dominance While Swedish Northvolt Files for Bankruptcy
Mao Geping IPO: Fusing Traditional Chinese Culture in Modern Beauty Trends
China Healthcare Sector Heats Up: WeDoctor and Xuanzhu Biopharm IPOs, Burning Rock Biotech’s Turnaround
#1 China’s Export Control a Tit-For-Tat Response to US Chip Restrictions – Sent Gallium, Germanium, and Antimony Prices Soaring
China has imposed export restrictions on key minerals with both civilian and military applications, retaliating against the latest U.S. blacklist targeting China’s chip sector. Beijing’s directive focuses on limiting exports of gallium, germanium, and antimony.
The Chinese Commerce Ministry cited national security concerns, emphasizing dual-use items that serve both civilian and defense industries. This move follows Washington’s intensified crackdown on Chinese tech firms, which saw 140 companies blacklisted and U.S. exports of chip-making tools and memory products banned.
Why These Minerals Matter
Gallium & Germanium: Essential for semiconductors, infrared devices, fiber optics, and solar cells.
Antimony: Crucial in ammunition, nuclear weapons, infrared missiles, and night-vision technology.
Beijing’s actions also include tighter controls on graphite exports, widely used in EV batteries, reinforcing its strategic grip on essential industrial resources.
Recent customs data highlights the impact of these restrictions. The U.S., a major importer of gallium and germanium in 2023, received no shipments of these materials from China in 2024 through October. Antimony exports to the U.S. plunged 97% in October after the restrictions were enforced. Antimony ingot prices to more than double in 2024, underscoring how Chinese trade policies disrupt global supply chains and escalate costs.
China’s production dominance is undeniable. According to consultancy Project Blue, China produces 59.2% of refined germanium and 98.8% of refined gallium globally. These materials are vital across sectors like electronics, defense, and renewable energy, intensifying the fallout from China’s export limits.
#2 China’s Industries Continue to Expand Despite Rising Trade Tensions
In November, China’s economy showed resilience despite escalating trade tensions, driven primarily by its industrial sector. The Caixin China General Composite PMI, which tracks both manufacturing and services, rose to 52.3, a 0.4-point increase from the previous month. This uptick was fueled by accelerating manufacturing activity, even as the services sector experienced a slight slowdown.
The Caixin China General Services Business Activity Index, which measures industries such as retail and tourism, dropped to 51.5, down 0.5 points from the prior month. This decline aligns with slower revenue growth in businesses like Trip.com, reflecting a more cautious consumer sentiment.
China’s manufacturing sector maintained its momentum, with the Purchasing Managers' Index (PMI) climbing to 50.3%, a 0.2 percentage point increase, indicating accelerated expansion. However, the Non-Manufacturing Business Activity Index slipped to 50.0%, reflecting a marginal contraction in sectors outside of manufacturing. Despite this, the Composite PMI Output Index held steady at 50.8%, signaling continued overall economic expansion.
China's broad-based economic growth, supported by its industrial sector, highlights its ability to navigate global uncertainties. While services remain vulnerable to weakening consumer demand, the sustained expansion in manufacturing signals underlying economic resilience—an encouraging sign amid rising global trade tensions.