The export of base metals for chip production from China has been limited

China has imposed restrictions on exports of two minerals used to make semiconductors and other electronic devices.

According to whistleblowers, such a measure is likely to increase costs for device manufacturers and intensify geopolitical tensions in the competition for the development of advanced computing technology.

China’s Ministry of Commerce announced in a statement that gallium and germanium, along with their chemical compounds, will be subject to export controls from August 1. The implementation of these measures will be in line with China’s national security and national interests.

China is the largest producer of 20 basic raw materials, including gallium and germanium. It also ranks first in refining and processing production. These two metals are used in a variety of products such as solar panels, lasers, night vision goggles, and computer chips.

According to the Chinese Ministry of Commerce statement, if exporters of these two minerals want to continue to send them abroad, they must apply for permission from the Ministry of Commerce. These companies are required to report details of foreign buyers and their requests, and if necessary, their requests can be referred to the State Council for review.

According to a Bloomberg report, this move is the latest development in the global battle to control technologies vital to industrial and military capabilities, and can be seen as an intensification of relations between China and strategic competitors such as the United States.

the end of the letter

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