China is curbing exports of two critical metals that are essential to manufacture electronics and semiconductors, as China’s technology battle with the Europe and USA heats up. These critical metals are germanium and gallium.
China and the USA have been locked in a tech trade war since 2019. The USA has used trade blacklists and sweeping export curbs to cut China off from important tech components and semiconductor chips.
These critical minerals of technology have become a spotlight in the trade war between the two superpowers.
In May, China labeled USA chip firm Micron a major security threat. Now, China is tapping on its strength — the critical metals that go into electronics and semiconductors.
China’s commerce ministry on Monday said, “New regulations will require exporters of gallium and germanium to get a license to ship the metals on national security grounds.”
Eurasia Group said, “A warning shot, not a death blow. But these latest measures are more limited in scope, and while the new rules require Chinese exporters to first get a license, no language automatically bars export to specific countries or end-users.”
Eurasia Group added, “It is a shot across the bow intended to remind countries including the United States, Japan, and the Netherlands that China has retaliatory options and to thereby deter them from imposing further restrictions on Chinese access to high-end chips and tools.”