China has announced a ban on the export of crucial high-tech materials to the United States, including gallium, germanium, and antimony, citing potential military applications. This decision follows the expansion of export controls by Washington on Chinese companies involved in computer chip-making equipment, software, and high-bandwidth memory chips.
The move comes amid escalating trade tensions, with President-elect Donald Trump threatening to increase tariffs on imports from China and other countries. In response, China has imposed restrictions on the export of strategic materials such as gallium, germanium, and antimony, which are essential for producing computer chips used in various products like mobile phones, cars, solar panels, and military technology.
In July 2023, China announced that exporters would need licenses to send these materials to the U.S. In August, the export of antimony, a key component in batteries and weapons, was also restricted.
Both countries have justified their export controls as necessary for national security. China's latest move is seen as a response to Washington's efforts to hinder its technological advancements with military potential. The U.S. heavily relies on China for gallium and germanium, with about half of its supply coming directly from the country.
China's Commerce Ministry has expressed concerns over the U.S.'s actions and vowed to protect its rights and interests. The U.S. recently added 140 Chinese companies to an 'entity list' subject to strict export controls, prompting China to tighten its export restrictions.
Despite frustrations over U.S. restrictions on advanced technology access, China has been cautious in retaliating to avoid disrupting its growing chip and technology sector. The ongoing trade and technology disputes between the two countries highlight the complex dynamics of global supply chains and national security concerns.
