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The
Chinese Commerce Ministry announced the move after the
Washington expanded its list of Chinese companies subject to
export controls on computer chip-making equipment, software and
high-bandwidth memory chips. Such chips are needed for advanced
applications.
The ratcheting up of trade restrictions comes at a time when
President-elect Donald Trump has been threatening to sharply
raise tariffs on imports from China and other countries,
potentially adding to simmering tensions over trade and
technology.
China said in July 2023 it would require exporters to apply for
licenses to send to the U.S. the strategically important
materials such as gallium and germanium. In August, the Chinese
Commerce Ministry said it would restrict exports of antimony,
which is used in a wide range of products from batteries to
weapons.
China is the biggest global source of gallium and germanium,
which are produced in small amounts but are needed to make
computer chips for mobile phones, cars and other products, as
well as solar panels and military technology.
China’s Commerce Ministry protested and said it would act to
protect China’s “rights and interests” after the U.S. side
announced it was adding 140 companies to a so-called “entity
list” subject to strict export controls. Nearly all are based in
China, though some are Chinese-owned businesses in Japan, South
Korea and Singapore.
Both governments said their respective export controls were
needed for “national security.” In hitting back at the latest
move by Washington to slow China's progress in developing
advanced technology with potential military applications, China
is tightening controls announced in July 2023.
China's government has been frustrated by U.S. curbs on access
to advanced processor chips and other technology on security
grounds but was cautious in retaliating, possibly to avoid
disrupting China’s fledgling developers of chips, artificial
intelligence and other technology.
The U.S. gets about half its supply of both gallium and
germanium metals directly from China, according to the U.S.
Geological Survey. China exported about 23 metric tons (25 tons)
of gallium last year and produces about 600 metric tons (660
tons) of germanium per year.
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