China has tightened controls on exports of indium, a rare metal essential for data centers and other high-tech manufacturing. The move has prompted concern that Beijing could use indium as another lever in its trade policy, especially because China supplies about 70% of the world’s indium.
Indium is a byproduct of zinc refining and is used to make displays and solders, as well as indium phosphide, which is needed for fast optical chips used in data centers. China added indium phosphide to its controlled export list in February 2025. Indium itself is not formally on that list, but Reuters reported that buyers say Chinese customs are subjecting shipments to increasingly strict checks.
One European buyer was asked to disclose who its end users are and where they are located. A large North American buyer said export approvals that recently came through the same day now take several days, and attributed the delay to more careful document review, describing the process as “tense.” Several other buyers who spoke to Reuters did not report similar problems, and no purchase is known to have been blocked.
Still, industry fears the tighter scrutiny could be a prelude to formal export restrictions or demands to reveal end-user identities, which China and other countries use to map global trade and identify supply-chain chokepoints. The concern is heightened by US vulnerability: earlier this year, the US Defense Logistics Agency issued a solicitation to stockpile up to 403 tons of indium over the next three years. An unidentified North American buyer told Reuters that the worry is China may be preparing either future limits or a complete export cutoff.
