China will prohibit the export of gallium, germanium, antimony and several others superhard materials with potential military applications USA. This has been announced by the country’s minister of commerce, Wang Wentaoa day after the third US campaign to slow the advance of the Chinese chip manufacturing sector.
China’s announcement is the consequence of a new chapter of the trade war that it is waging with the United States, after Washington launched a new campaign on Monday, the third in three years, against the Chinese technology sector. More than 140 companiesincluding Naura Technology, China’s largest semiconductor manufacturer, were affected by the US restrictions.
This move is part of a large-scale effort by the administration Biden to block China’s access to materials needed to produce chips. Even though Biden is about to leave the presidency, Trump is expected to not only continue his work, but also to toughen protectionist measures against China, in order to safeguard the country’s economic muscle to the detriment of foreign influence.
The United States Secretary of Commerce, Gina Raimondojustified the US offensive “to prevent China from advancing its domestic semiconductor production system, which it would use to modernize your army«. However, the reaction of Chinese companies has not been one of panic, but rather of reliefbecause within the framework of the trade war between the two powers, they had prepared for this scenario.
A chip materials manufacturing company assured the Chinese media Yicai that the companies had stocked their warehouses with stock, so it would not be a problem to continue production despite the sanctions imposed by the United States. Although Chinese authorities called the US move “economic coercion,” the measures have proven to have a minimal impact in the situation of Chinese technology companies, whose stock values rose slightly on Tuesday.
Following the US campaign, apparently frustrated by China’s ability to anticipate, the country’s authorities have decided counter to assert its position in the global economy. Beijing’s directive on so-called “dual-use items”, both civil and militaryis intended to safeguard national security and interests and will come into force immediately.
The ban on exporting these minerals will strengthen the existing limits in relation to the export of critical minerals, which Beijing already began to establish last year. These measures are part of the latest escalation of trade tensions between the two powers, prior to Trump’s inauguration. As a result, no Chinese shipments of gallium or germanium to the United States during the month of October, despite its high price in the mineral market last year.
These materials are key for the manufacture of semiconductorsthose components that, depending on the circumstances, can act as conductors or insulators of current in a circuit. They are an indispensable part of the manufacturing process of smartphones, computers, cars, refrigerators and, ultimately, any electronic device, and the world powers They fight for control.
On the other hand, the germanium It is used alone for the manufacture of fiber optic cables and solar cells, as well as a key element in infrared technology. As for the rest of the materials, the total Chinese shipments of antimony They fell 97% compared to September, after orders from Beijing. Last year, China claimed the 48% of antimony extracted worldwide. This material finds its greatest use in ballistic ammunitioninfrared missiles, nuclear weapons and night vision lenses, as well as batteries and photovoltaic equipment.
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