China has announced a ban on exporting several rare minerals, including gallium, germanium, and antimony, to the United States. The move is seen as an escalation of supply chain warfare between the world’s two largest economies.
The ban, which takes effect immediately, aims to restrict the export of critical components used in advanced technologies such as semiconductors, weaponry, and smart bombs. China has been tightening its grip on these materials to retaliate for US clampdowns on American technology exports to China over the past two years.
China’s exports of gallium and germanium briefly halted a year ago, forcing the US to rely more on purchases from other countries like Japan. The new ban could limit America’s access to these crucial materials, sparking concerns about its national security.
The move comes as the Biden administration expands curbs on technology sales to China, adding over 100 Chinese companies to a restricted-trade list and prohibiting the sale of certain types of chips and machinery. US officials characterize the limits as routine actions to update existing restrictions.
China has criticized these measures as “illegal,” warning that they undermine the international economic order and disrupt global production and supply chains. In response, Chinese industry groups have called for domestic purchases of semiconductors and other essential materials.
The impact of this ban on US chip makers, such as Micron and Intel, remains to be seen. However, experts caution that limiting access to these critical materials could backfire, particularly if the move is seen as a trade war tactic.
Source: https://www.nytimes.com/2024/12/03/world/asia/china-minerals-semiconductors.html