China has intensified regulatory scrutiny on indium exports, raising concerns among international buyers that this rare metal could ultimately be brought under Beijing's export control regime, which has been used as a strategic trade tool.

According to Reuters reporting, this development has sparked anxiety across global supply chains related to advanced technology.

China accounts for nearly 70% of global indium production. The metal is a byproduct of zinc smelting and is primarily used in display and soldering applications.

However, its strategic importance has increased because it is also a key raw material for indium arsenide, a compound used in high-speed optical chips that power AI-driven data centers and next-generation computing infrastructure.

Beijing added indium arsenide to its export control list in February 2025. The restriction reportedly has become a significant obstacle for companies developing advanced data center technology.

The issue is serious enough that the CEO of Nvidia-backed chipmaker Coherent raised concerns during a visit to Beijing in May alongside U.S. President Donald Trump.

Although indium metal itself is currently not subject to export restrictions, Reuters reports that buyers are facing intensified customs scrutiny.

Some buyers report that approvals that previously took one day now require several days due to increased inspection and documentation requirements.

For the first time this year, a European buyer was reportedly required to disclose detailed end-user information, including the destination country.

A North American buyer described the process as "tense," although they did not face additional documentation requirements.

China's Ministry of Commerce did not respond to requests for comment due to public holidays.

The increased scrutiny is inconsistent across all transactions. While some buyers face stricter inspections, others report their experience has remained unchanged. To date, there have been no confirmed shipment blockages.

However, industry participants remain concerned that these steps may foreshadow stricter export controls or mandatory end-user disclosure requirements.

Countries typically use such measures to track global supply chains and identify strategic bottlenecks.

Indium has been identified as a potential strategic vulnerability, particularly for the United States. Earlier this year, the U.S. Defense Logistics Agency issued a proposal to stockpile as much as 403 tons of the metal within three years.

Some North American buyers believe that given China's increasingly frequent use of resource controls in trade policy, the current reporting requirements may be an early indicator of future restrictions or even possible export bans.