China has suspended exports of gallium and germanium. What is the purpose of those restrictions and how will they affect them?
China stops exporting two strategic materials
Amid the ongoing cold war with the US over access to key technologies, China’s Ministry of Commerce has announced that it will control the export of certain strategic minerals.
On the first day of August, export control measures from China came into effect. The control will apply to a total of eight gallium-related products. These include gallium arsenide, gallium nitride, gallium metal, gallium antimony, gallium phosphide, etc.
Why does China ban the export of gallium and germanium?
China bans the export of gallium and germanium for the following reasons:
- To protect their national interests and security as these strategic materials are vital for the development of advanced technologies in defense, electronics and renewable energy.
- As an attempt to retaliate against the United States and its allies, which have imposed restrictions and chosen other strategic actions to cut off China’s access to semiconductors and technology, chip manufacturing technology.
- Send a warning message to the Biden administration that China is smart about inputs to the semiconductor, automotive and aerospace industries, and will always be ready to cause trouble for companies in the United States.
- As an effort to gain more bargaining power in the global chip war and prove its ability in the high-tech field.
Consequences of China’s export restrictions on gallium and germanium
China is an important producer of two strategic raw materials. In this sense, export restrictions will have a significant impact on the global supply of these two strategic materials.
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Categories: Trends
Source: vcmp.edu.vn