July 4 (UPI) — The Chinese government has announced that it will implement export restrictions on two rare raw metals, gallium and germanium, which are vital for computer chip production. This move is a direct response to the earlier semiconductor export restrictions imposed by the United States on China. China’s imposition of these export controls, effective from August 1, is positioned as a matter of national security.
China dominates the global market for both of these rare earth metals, and semiconductor manufacturers are expected to be severely impacted by this decision.
Mao Ning, the spokesperson for China’s foreign ministry, emphasized that these measures are not specifically targeted at any particular country. However, she justified the rules as necessary export controls aimed at safeguarding the security and stability of international supply chains.
The new restrictions in China will require exporters to obtain licenses for shipping certain gallium and germanium compounds to other countries. Exporters will need to disclose information about importers and end users, as well as clarify the intended use of these metals.
This recent development is part of an ongoing global technology battle to determine who will emerge as the leader in this industry. Given China’s significant stake in this competition as a major producer of raw materials, these export controls serve as a strategic move.
Last year, the United States took steps to limit the export of semiconductor technology to China, citing national security and foreign policy interests. The aim was to impede China’s ability to acquire and manufacture high-end chips used in military applications.
“This serves as a warning signal to countries such as the United States, Japan, and the Netherlands that China possesses retaliatory options and serves to dissuade them from further restricting Chinese access to high-end chips and tools,” wrote analysts Anna Ashton, Xiaomeng Lu, and Scott Young from Eurasia Group in a research note obtained by CNBC.
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