Will Chinese curbs on two metals shake commodity universe? Anurag Singh answers

economictimes.indiatimes.com:

" I think it is less to do with the Chinese domestic economy. Eventually, I think that has to find its own path because we need to understand it has a base of 15 to 18 trillion, depends on what estimates you take," says Anurag Singh, Managing Partner, Ansid Capital.Do tell us, as far as Chinese curbs go on these metals, on gallium and germanium, it seems like a tit-for-tat move because it came close on the heels of America deciding that it is not going to pass on advanced technology to China as easily as it did in the past. Technology that would help develop artificial intelligence for one. But as far as Chinese curbs go on these two metals, how much could it actually hurt a Chinese economy that's struggling to find its feet after the pandemic? I think it is less to do with the Chinese domestic economy.

Eventually, I think that has to find its own path because we need to understand it has a base of 15 to 18 trillion, depends on what estimates you take. But I think it is becoming more a question of retaliation. And we know a lot of these business leaders have been to China in the recent past and Defence Secretary Blinken was there.

Now Madam Yellen is there to visit China. I think it might be a bargaining chip because understand semiconductor wars are already underway. China is a big consumer of semiconductor as well as a big supplier.

So there is dependence there. The challenge is that China manufactures low-end semiconductors, whereas all the high-end equipment semiconductor chips come from the technology comes from the US. Now this whole effort of US and European Union to block this technology to China and Chinese companies is kind of becoming a difficult path for China and so that is the tit for tat.