Amid the ongoing Cold War with the US in the matter of access to critical technologies, the commerce ministry of China has announced that it is going to exercise control over the exports of some specific strategic minerals.
It is on the first day of August that the export controls from China will be coming into effect. The control is going to be applicable to a total of eight gallium-related products. These include gallium arsenide, gallium nitride, gallium metal, gallium antimonide, gallium phosphide, and more.
The reasons behind China banning exports of gallium and germanium?
China has banned exports of gallium and germanium for the following reasons:
- To safeguard its national interests and security because these strategic materials are important for the development of advanced technologies in defense, electronics, and renewable energy.
- As an attempt to retaliate against the United States and its allied nations who have put restrictions and have opted for other strategic actions to cease China's access to semiconductors and chipmaking technologies.
- In order to provide a warning message to the Biden administration that China is significantly smart in matters of inputs to the semiconductor, automobile industry, and aerospace, and will incessantly be willing to cause trouble to the companies in the United States.
- As an attempt to receive more bargaining power in the war of global chips and to prove its mettle in the high-tech sector.
Consequences of export restrictions by China on Gallium and Germanium
China is an important producer of the two strategic materials. In this sense, the restrictions on exports will have an important effect on the global supply of these two strategic materials.
Comments
All Comments (0)
Join the conversation