China announced on Monday the imposition starting next month of restrictions on exports of two rare metals of which the Asian giant is the main producer and essential for semiconductors. These measures take place in a context of tensions around semiconductors, in a context of technological rivalry with the United States.
Starting August 1, gallium and germanium exports will require a license before they can be allowed, according to a guideline issued by China’s Ministry of Commerce and Customs. It will be necessary to specify the final recipient of the exports and the purpose of their use, adds the text. The statement justifies these measures by the need to “preserve security and national interests.”
Chinese companies blacklisted by the US
Found in integrated circuits, LEDs and photovoltaic panels in particular, gallium is considered a critical raw material, according to the European Union. China accounted for 80% of gallium production according to a 2020 report from the European Commission. As for germanium, essential for optical fibers and infrared, 80% of the production of this element comes from China, according to the same document.
Washington has blacklisted Chinese companies in recent years to isolate them from supply chains for American technologies, including the most advanced chips. China, which is seeking to become self-sufficient in semiconductor design, believes the moves are aimed at maintaining US supremacy in this area.
The United States has also tightened export restrictions on semiconductors in recent weeks and is pressing allies to do the same. As of September, the Netherlands will thus impose restrictions on the export of technologies for the manufacture of electronic chips.
Source: BFM TV
