A wave of panic is sweeping through the artificial intelligence sector. Already the undisputed master of critical metals, China is intensifying customs controls on indium. This discreet yet indispensable component in the architecture of future data centers could become Beijing’s new weapon in its commercial war against the West.
China, which accounts for nearly 70% of global indium production, is quietly tightening surveillance of its exports. Although this metal derived from zinc refining is not yet officially subject to global restrictions, several international buyers report unusual administrative complications at Chinese customs.
One European customer had to disclose for the first time this year the identity and precise location of its end users. Another major buyer based in North America reports that shipment-approval times have moved from a few hours to several days, describing a situation that has become extremely tense.
The Chinese Ministry of Commerce did not wish to comment immediately, taking advantage of a public holiday. While no complete cargo blockage has yet been recorded by operators, the implementation of these in-depth audit processes is worrisome for the industry. Professionals see in them the early signs of a short-term regulatory lock-in.
The stakes of this tightening are colossal for technology giants. Indium is the base material for indium phosphide, a compound essential to the manufacture of ultra-fast optical chips that power next-generation data servers.
Aware of this lever, Beijing has already placed indium phosphide on its export-control list in February 2025. The barriers are already so heavy that the head of the chipmaker Coherent, backed by Nvidia, had to travel to Beijing last May alongside the American president Donald Trump to try to unlock the situation at the highest level.
Facing the threat of a disguised embargo, the American administration is scrambling to respond. The Defense Logistics Agency recently issued a call for bids to build an emergency strategic stockpile of up to 403 tonnes of indium over three years.
An anonymous North American buyer sums up the market’s mood: “We suspect that these disclosure requirements are the precursor to severe restrictions or outright export bans.” By mapping global supply chains through these end-user forms, China is arming itself with a formidable tool to pinpoint precisely the choke points of Western tech.
