Beijing: China has announced an export ban on critical semiconductor components, including gallium, germanium, and antimony, to the United States, escalating trade tensions just a day after Washington imposed new restrictions on Chinese chip firms.
The Chinese Ministry of Commerce cited “national security” as the reason for the export curbs, which also tighten controls on graphite exports to the US by subjecting them to stricter end-use reviews.
These measures are part of Beijing’s ongoing efforts to regulate critical mineral exports, with the latest restrictions exclusively targeting the American market.
“China is strengthening export controls on relevant dual-use items to safeguard national security and meet international obligations, including non-proliferation,” the ministry said.
China will ban the #export of gallium, germanium, antimony, and superhard materials with potential #military applications to the United States.#SupplyChainhttps://t.co/QpOmxdcSU1 pic.twitter.com/4f73tVyEHL
— China SCIO (@chinascio) December 4, 2024
Gallium and germanium are vital for producing semiconductors, infrared technology, fiber optics, and solar cells, while antimony is used in weaponry. Graphite is a major component of electric vehicle batteries. With China dominating global production—94% of gallium and 83% of germanium—the ban underscores Beijing’s leverage in critical industries.
This move comes as Washington expands curbs on Chinese access to advanced semiconductor technology, including restrictions on 140 companies and controls on chip-making equipment and software. China has condemned these actions as a politicization of economic and technological issues.
Experts warn the tit-for-tat measures could disrupt supply chains and exacerbate global inflation. However, some analysts believe the immediate impact on production may be limited due to stockpiling by intermediary manufacturers.
China’s trade associations are urging companies to prioritize domestic and alternative non-US chip suppliers. Meanwhile, the China Association of Automobile Manufacturers criticized the US restrictions, stating they undermine trust in American chip products.
The escalating trade conflict highlights the growing rivalry between the two economic superpowers, with both sides leveraging their strategic resources to gain an upper hand.
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