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China adds more fuel to the ‘war of chips’ and vetoes the export of two key metals

Date: July 18, 2024 Time: 11:28:46

High voltage in trade tensions between the United States and China. On this occasion, the order comes from the Asian continent after the Chinese Ministry of Commerce has announced restrictions on the export of gallium and germanium, two key metals for the manufacture of semiconductors. In a statement published last night, the aforementioned body has indicated that, as of August 1, it will not be possible to export gallium or germanium metal or more than a dozen of their derivatives without requesting a specific trade permit.

The statement has pointed out that the decision to apply these export controls is due to the spirit of “protecting national security and national interests”, and that the export of the affected materials without the pertinent permits will be “constituting a crime”. China is the world’s largest producer of both elements, with more than 95% of gallium production and 67% of germanium.

In an editorial, the official newspaper ‘China Daily’ has defended the decision as “fair”, and accused the United States of having the largest germanium deposits in the world but “not exploiting them hardly”, since its extraction represents an important source of environmental pollution. “They are the ones endangering global supply chains, and they cannot blame China,” which is defending its legal national interests in this world of uncertainty.”

Experts quoted by the Hong Kong newspaper ‘South China Morning Post’ assure that it is a measure of pressure in the face of negotiations with Washington and other Western governments so that they withdraw their restrictions on the export of chips and equipment necessary for manufacturing to China. of these products, in which the Asian country still depends on the outside despite its efforts to become self-sufficient. The measure has been announced the same week that the US Treasury Secretary, Janet Yellen, will pay an official visit to China.

“The US is the number 1 target of the export control imposed on gallium and germanium. Germanium is also used in important military technologies. (…) It is a clear retaliation for the restrictions imposed by the US on the sale of chips to Chinese companies,” explained Aadil Brar, a visiting professor at National Taipei Chengchi University. “This will probably exacerbate the technological war in the medium term,” said the academic.

Although replacing China as the source of these materials would be very difficult in the short term, Thorsten Benner, director of the Global Institute for Public Policy in Berlin, said the restrictions are a “very useful reminder” about the “urgency” of eliminating the risks of dependence on China for key resources, even if it meant incurring “increased costs or unpopular mining or refining initiatives in our national territories.”

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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