China is moving to restrict exports of indium, a critical metal used in the optical chips that help power artificial intelligence systems, and Washington is scrambling to respond, according to Startup Fortune.
The shift is being felt as tighter scrutiny rather than an outright ban, at least for now. According to the Free Press Journal, China has stepped up its examination of indium exports, prompting concerns that the metal could face formal export controls. Buyers are already reporting slower approvals for shipments.
The leverage here comes down to concentration. China dominates global indium production, according to the Free Press Journal, which means even modest delays in its export approvals can ripple through supply chains that depend on the metal. Startup Fortune frames the move as an attempt to "choke" a material that underpins AI optical chips.
The two reports describe a familiar pattern in the US-China technology rivalry: as Washington has limited China's access to advanced chips and chipmaking tools, Beijing has increasingly leaned on its control of raw materials and critical metals as a point of pressure. Indium now appears to be joining that list.
Neither source describes specific new rules, volumes, or a timeline for broader restrictions. What they document is rising uncertainty — slower paperwork, fears of formal controls, and an American response still taking shape.
Why it matters: if the world's dominant supplier slows or restricts a metal essential to AI hardware, chipmakers and the AI buildout that depends on them could face new costs and bottlenecks far upstream of the data center.