The new export controls, announced on Monday by the Chinese Commerce Ministry, will go into effect on August 1 and apply to gallium and germanium – rare metals used in making computer chips and a variety of other products, such as solar panels and advanced radar equipment,Exporters according to export controls introduced by the ministry will need “special permission” to ship either of the two metals or their derivative compounds out of China, citing national security interests.
The US hasn’t produced any gallium since 1987 and relied on China for 53% of its imports of the material between 2018 and 2021, according to the US Geological Survey. Amsterdam’s move drew an angry response from the Chinese government, which claimed that the US was coercing other countries to help maintain its “global hegemony” and implement “semiconductor suppression against China.”
The new restrictions on raw materials apparently deliver on China’s warning about the chipmaking supply chain. An editorial published on Monday in the state-owned China Daily newspaper suggested that Beijing’s move was made in retaliation for the curbs imposed by the US and its allies.
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