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China has stepped up scrutiny of indium exports, prompting concerns that the critical metal could face tighter export controls. As China dominates global production, buyers report slower approvals and increased customs checks. The move raises fears of supply disruptions for AI chip manufacturing and next-generation data centre technologies

China has increased regulatory scrutiny over exports of indium, raising concerns among international buyers that the niche metal could eventually be added to Beijing’s export control regime, which is already used as a strategic trade lever.

According to a report by Reuters, the development has sparked anxiety in global supply chains tied to advanced technologies.

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

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