China just played a trump card in the chip war. Are more export curbs coming? | CNN Business

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A trade war between China and the United States over the future of semiconductors is escalating.

Beijing hit back Monday by playing a trump card: It imposed export controls on two strategic raw materials, gallium and germanium, that are critical to the global chipmaking industry. “We see this as China’s second, and much bigger, counter measure to the tech war, and likely a response to the potential US tightening of [its] AI chip ban,” said Jefferies analysts. Sanctioning one of America’s biggest memory chipmakers, Micron Technology\n \n , in May was the first, they said.

Shares of Chinese producers of the two raw materials surged by 10% on Tuesday. Beyond China, Australian rare earths producers also advanced, as investors expected Beijing might extend export curbs to that group of strategically important minerals. Lynas Rare Earths\n \n rose 1.5%. How do they play into the chip war? The United States is dependent on China for these the two critical elements.

 

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China hits back in the chip war, imposing export curbs on crucial raw materials | CNN BusinessBeijing will impose export controls on two rare elements essential for manufacturing semiconductors, in apparent retaliation after the United States and Europe restricted chip exports to China.
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