China limits the export of two little-known metals crucial for the semiconductor
China and the United States are becoming increasingly entangled in a chip war that has escalated since October. A recent measure by China to restrict the export of two little-known metals has once again put the semiconductor sector in check. In a statement published on Monday, China's Ministry of Commerce and Customs Department reported that they plan to limit exports of two metals, gallium and germanium, along with several of their compounds, starting August 1 to "safeguard national security and interests." Exporters can apply for export licenses if they want to continue shipping products outside China, according to the announcement.
Gallium and germanium are used in the manufacturing of chips, electronics and solar energy, so news of the export ban is seen as a retaliatory measure by Beijing in its technology war with the West. The announcement comes just days after the Netherlands restricted the sale of high-end chip manufacturing equipment abroad, a move that appears to be Algeria Phone Number List aimed at China. How generative AI will be another battlefield between the US and China: "We are not interested in offering them technology that they can use against us" Xi Jinping and Biden in Bali The Biden Administration also wants to restrict Chinese companies' access to U.S.-based cloud service providers , the Wall Street Journal reported Tuesday , citing people familiar with the situation.
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In October, the United States began limiting sales of advanced semiconductors and chipmaking equipment to China. "It is a shot in the air that aims to remind countries like the United States, Japan and the Netherlands that China has options for retaliation and thus dissuade them from imposing more restrictions on Chinese access to high-tech chips and tools," according to Eurasia analysts. Group, a risk consultancy, in a note released on Tuesday and to which Business Insider has had access . With US Treasury Secretary Janet Yellen scheduled to travel to Beijing for a three-day visit on Thursday, Chinese officials could be using export restrictions as leverage for negotiations, analysts say.
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