China's restrictions on chip-making materials are 'just the start', warns ex-vice minister
Reuters. If restrictions targeting China's high-technology sector continue then countermeasures will escalate, Wei said. Meanwhile, according to Wall Street Journal, China set export restrictions on two minerals the US says are critical to the production of semiconductors, missile systems and solar cells, a show of force ahead of economic talks between two rivals that increasingly set trade rules to achieve technological dominance.
Companies affected by China's recent decision to limit the export of two metals commonly utilized in semiconductors and electric vehicles are scrambling to secure alternative supplies. Concerns are rising among industry suppliers that this move could be followed by restrictions on rare earth exports. The sudden announcement of export controls, set to take effect from August 1, has further escalated the trade tensions between China and the United States, potentially leading to significant disruptions in global supply chains.
Observers interpreted the Chinese commerce ministry's decision, justified on grounds of national security, as a reaction to the increasing measures taken by Washington to limit China's technological progress. "China has hit the American trade restrictions where it hurts," said Peter Arkell, chairman of the Global Mining Association of China.
China is the primary global producer of gallium and germanium. According to customs data reported by news website Caixin, in 2022, the leading importers of China's gallium products were Japan, Germany, and the Netherlands.
Similarly, the top importers of Chinese germanium products were Japan, France, Germany, and the United States. The commerce ministry is scheduled to hold a meeting with major metal producers on Thursday to discuss
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