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China strikes back at U.S. ban, halts export of key chip materials

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China hit back on Tuesday after the Biden administration imposed its latest export ban on its chip industry companies.

Beijing’s Ministry of Commerce announced an immediate halt to exports to the United States of gallium, germanium, antimony and superhard materials, as well as elements used in the technology industry and ammunition.

The Commerce Department issued the order in a notice issued on Tuesday, a day after Washington expanded its crackdown on China’s semiconductor industry for the third time in three years. Restrictions on exports to 140 companiesincluding chip equipment manufacturer Northern Huachuang Technology Group.

See also: China’s chip industry faces third wave of U.S. export restrictions

The directive also requires stricter scrutiny of the end-use of graphite “dual-use items” shipped to the United States on the grounds of safeguarding national security and interests.

Restrictive measures strengthen law enforcement Existing restrictions Exports of key minerals announced by Beijing early last year.

But they apply particularly to the United States, where trade tensions between the world’s two largest economies have been escalating recently ahead of President-elect Donald Trump’s inauguration on January 20.

“In principle, exports of gallium, germanium, antimony and superhard materials to the United States are not allowed,” the ministry said.

Experts warned in August that China would tighten export controls on key minerals needed for chip manufacturing Could ultimately trigger a global semiconductor shortage.

Since last year, Beijing has sharply cut exports of gallium and germanium, two metals critical to the production of high-speed computer chips.

China dominates the supply of both metals, accounting for at least 60% of global germanium production and nearly 90% of global gallium production.

  • Reuters Additional input and editing by Jim Pollard

See also:

China’s blockade of critical minerals could lead to global chip shortage

China to restrict exports of antimony metal, ores and oxides – South China Morning Post

U.S. tech companies face ‘death spiral’ from new Chinese restrictions: Lawmakers

China warns restrictions on chip-making metals ‘have only just begun’

China metal restrictions and rare earth risks fuel search for safe sources

World’s largest gallium buyer casts doubt on China’s long-term export ban

China’s gallium solves EV maker’s dilemma

Western companies work to break China’s control of rare earths

The United States “formulates a list of sanctions against China’s advanced chip factories”

China bans government computers from using Intel, AMD chips: FT

China’s retaliatory ban could cost U.S. tech giants billions

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He served as a senior editor at The Nation for more than 17 years.

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