China has banned exports of key materials used in advanced semiconductors, electric vehicles, and other high-tech products in response to the US expanding export controls on Chinese companies. The move could have a significant impact on global supply chains and manufacturing, with analysts warning of a potential tipping point in the trade conflict between the two countries.
The banned materials include gallium, germanium, antimony, graphite, and super-hard materials like diamonds and synthetic materials. China’s dominance in the market gives it a significant cost advantage, but the US is exploring alternative sources, including recycling and domestic production.
The US had previously restricted exports of advanced semiconductor technology to China, citing national security concerns. China retaliated by banning exports of critical minerals needed for advanced semiconductors, which could have a wide impact on manufacturing in many industries and supply chains.
Analysts say the latest restrictions could be a tipping point in trade conflict between the two biggest economies, coming at a time when antagonism has ramped up over time. The situation is complicated, with China producing most critical minerals but facing pressure to tap into alternative sources due to environmental concerns.
Source: https://finance.yahoo.com/news/chinas-ban-key-high-tech-082353588.html