🛢 Energy & Commodities risk-off · 0–6 months
A what‑if from the future

What if China re-imposes its gallium and germanium export ban?

Gallium/germanium controls are a Chinese near-monopoly (~90%+ of refined supply), so the real pinch is defense radar and compound-semis (RF GaN), not the broad Nasdaq the cascade leans on. When Beijing first weaponized these in 2023-24 and again in Dec-2024, spot Ga/Ge doubled but the SOX barely flinched — TSMC/Nvidia use little. Forward angle: this time it bites US/EU primes (LMT, RTX) more than logic fabs; the yuan move is overstated since China gains leverage, not loss.

9%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 9% · 90% range 0–20% · 40 analogues · measured class supply_chain 10% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — supply_chain ≈0.2052/yr → 10% in 6 mo10%
Analyst prior · editorial share 100% of the class45%
Pooled · weight 87%9%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)9%
Published9%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. After the November 2026 suspension lapses, Beijing reinstates gallium and germanium export bans and extends them beyond the US, hitting chip and radar makers. :: The trigger decomposes into signed root‑shocks — Semiconductor supply risk ▲ · Trade tension ▲ · Defense spending ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1TSMC TSMon Hyperliquid 📈 chartEquity▼ -2.5%
hist -2.41–-0.46% · other way +1.17% (n=12)
2Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.4%
hist -1.66–-0.65% · other way +0.99% (n=12)
3Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.3%
hist -2.03–-0.38% · other way +3.31% (n=12)
4Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.1%
hist -1.31–-0.53% · other way -0.12% (n=12)
5ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.7%
hist -3.94–+0.75% · other way -1.38% (n=12)
6AMD AMDon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.65–+0.89% · other way -2.76% (n=12)
7Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.6%
hist -1.25–+0.47% · other way +5.2% (n=12)
8Micron MUon Hyperliquid 📈 chartEquity▼ -1.6%
hist -2.61–+0.15% · other way -2.25% (n=12)
9Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.6%
hist -2.44–+0.07% · other way -0.68% (n=12)
10Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.3%
hist -1.49–-0.12% · other way -1.42% (n=12)
11Tech sector XLK 📈 chartEquity▼ -1.4%
hist -0.92–-0.39% · other way +0.3% (n=12)
12Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.1%
hist -3.75–+0.8% · other way -3.71% (n=12)
13Chinese yuan CNY 📈 chartFX▼ -1.0%
hist -1.01–-0.11% · other way -0.09% (n=12)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -0.9%
hist -3.05–+0.71% · other way -3.53% (n=12)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.4% · Chinese yuan -1.0% · Lockheed +0.5% · Northrop +0.5% · Aussie dollar -0.5% · Freeport (copper) -0.4%

Why we may diverge from history

Trust the cascade short on AVGO: its +30%+ realized comes entirely from 2025 AI-capex bull windows — gallium-germanium curbs are real but second-order to AI demand driving the chip tape.

Historical precedent — what analogous events actually did

Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Israel strikes Iran — Operation Rising Lion 2025-06 Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Trump 'Taiwan should pay for defense' chip selloff 2024-07 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 OPEC abandons output defense, opting for market share vs US shale 2014-11 Smoot-Hawley clears the US House 1929-05 US-China extend tariff truce by another 90 days 2025-08 US and China agree Geneva tariff truce, slashing rates 2025-05 Operation Sindoor: India strikes Pakistan after Pahalgam attack 2025-05 TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02 Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12 ASML bookings-miss crash 2024-10 October 2024 Iranian ballistic-missile attack on Israel 2024-10 Hezbollah pager and device explosions across Lebanon 2024-09 Megacap AI-capex doubt selloff 2024-07 Wagner Group mutiny against the Kremlin 2023-06 China fires ballistic missiles into Japan's EEZ during Taiwan drills 2022-08 Netflix subscriber-loss crash 2022-04 Meta 2022-02 Didi removed from China app stores after NYSE IPO 2021-07 Saudi-Russia oil price war 2020-03 Huawei added to Entity List + ICT executive order 2019-05 India's Balakot airstrike inside Pakistan 2019-02 Pulwama attack ignites India-Pakistan crisis 2019-02 Nvidia crypto-glut guidance crash 2018-11 US List 3 tariffs on $200B of Chinese goods finalized 2018-09 Turkish lira crisis 2018-08 US Section 301 List 1 tariffs take effect on China 2018-07 China retaliates: $50B tariff list incl. soybeans 2018-04 US Section 232 steel & aluminum tariffs imposed 2018-03 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Mexican peso crash on Trump 2016 win 2016-11 Egyptian revolution / Mubarak uprising 2011-01 2001 Indian Parliament attack 2001-12 US airline stocks plunge ~40% on first trading day after 9/11 2001-09 Kargil War begins 1999-05 Hong Kong HKMA market intervention against speculators 1998-08 Hong Kong defends the peg with sky-high HIBOR 1997-10
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
CNY CNYSHORT-0.5% · 5d -0.3%70%36 0.38✓ matches cascade
ETH ETHSHORT-5.3% · 5d -4.6%70%29 0.32✓ matches cascade
TRY TRYSHORT-1.5% · 5d +0.6% ↺ fades69%34 0.32✓ matches cascade
KWEB KWEBSHORT-1.8% · 5d -1.8%64%33 0.25✓ matches cascade
SOL SOLSHORT-6.3% · 5d -6.8%68%18 0.23✓ matches cascade
COIN COINLONG+8.8% · 5d +5.0%63%18 0.23⚠ differs
AUD AUDSHORT-0.8% · 5d -0.4%64%34 0.22✓ matches cascade
RTX RTXSHORT-1.0% · 5d -1.1%60%39 0.19⚠ differs
NVDA NVDASHORT-0.8% · 5d -3.6%63%37 0.18✓ matches cascade
FCX FCXSHORT-3.2% · 5d -2.0%61%39 0.18✓ matches cascade
XCU XCUSHORT-0.6% · 5d -0.8%61%36 0.18✓ matches cascade
MRVL MRVLSHORT-1.5% · 5d -2.5%62%36 0.17✓ matches cascade
NDX NDXSHORT-0.2% · 5d -1.4%61%39 0.16✓ matches cascade
BABA BABASHORT-0.8% · 5d -2.6%59%33 0.16✓ matches cascade

Why this probability

Gallium/Ge controls are now a proven recurring tool; reimposition after lapse plausible but politically contingent on US deal. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.