American companies are grappling with a shortage of critical minerals used in daily operations despite China easing some of its export controls, according to industry insiders.

After Beijing and Washington agreed to a so-called trade truce last November, the Ministry of Commerce issued a notice suspending a ban on shipments of gallium, germanium and antimony to the US for one year.

But China’s dominant position in the global market for these vital raw materials, including heavy rare earths, continued to weigh on US companies, industry insiders said.

“There is no immediate broad-based solution except supply loosening in China,” said David Abraham, director of Three Legged Capital in New York, a specialist advisory firm focused on critical mineral supply chains.

“It’s not just that materials are dear; it’s that they are not getting to manufacturers,” he added, noting the current situation was creating “severe challenges” for the defence and tech industries.

Jesse Marks, CEO and executive director of Rihla Research & Advisory, a strategic consulting firm on diversifying critical mineral supply chains, said China’s blanket bans and export licensing regime had fuelled a global scramble for supplies since last April.