China has imposed a ban on exporting key high-tech materials used in making products like smartphones, electric vehicles, and radar systems. The move comes after the US expanded its export controls to include dozens of Chinese companies that make equipment for advanced computer chips.
The restrictions could have a significant impact on manufacturing industries and supply chains worldwide. Critical minerals like gallium, germanium, and antimony are crucial for producing semiconductors, which are used in AI, defense applications, and other high-tech products.
China’s decision is seen as a tit-for-tat response to the US move. The US had ordered new measures to prevent China from accessing certain advanced semiconductor technologies and tools. Washington has also expanded its “entity list” of companies facing strict export controls, including 140 Chinese companies.
The ban on key materials could disrupt global supply chains, particularly for industries like electric vehicles, aerospace, and defense. The US government estimates that the loss of access to these materials could cost the economy over $3 billion.
Both countries accuse each other of “weaponizing” trade. China has imposed licensing requirements on exports of critical minerals since July 2023, but has not exported them to the US this year. The US is exploring alternative sources for these materials, including partnerships with European and other countries.
The situation is complex, with both sides having legitimate concerns about national security and economic interests. However, China’s decision marks a significant escalation in the trade conflict between the two economies.
Source: https://apnews.com/article/china-us-gallium-critical-tech-ban-711fdfcb7c09e0e0e6374192fd2e24fa