China bans exports of gallium, germanium, antimony, and other crucial minerals to the US
The Chinese Ministry of Commerce has announced new export controls in response to the US-introduced restrictions on chipmaking equipment.
Photo by Wang Zheng/VCG via Getty Images.
The Chinese Ministry of Commerce has announced new export controls in response to the US-introduced restrictions on chipmaking equipment.
According to the commerce ministry’s announcement, the export licenses for dual-use items related to gallium, germanium, antimony, and superhard materials (i.e. diamonds) to the US will not be granted.
People's Republic of China will also tighten graphite dual-use items exports to the US – the shipments will be subjected to strict end-use reviews. The export of dual-use items to US military users or for military purposes is prohibited.
The decision's basis is “to safeguard national security and interests and fulfill international non-proliferation obligations.”
The ministry also warns that any organizations and individuals, from any country, who violate these provisions and provide relevant China-originated dual-use items to US buyers, “will be held legally accountable.”
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The decision comes a day after the US introduced its round of new export controls.
According to Reuters, President Joe Biden's administration has introduced a third major wave of semiconductor export restrictions. These restrictions curb the shipments of high-bandwidth memory (HBM) chips, chipmaking, and software tools and affect 140 companies, including Naura Technology Group.
China is a dominant supplier of rare earths and other critical minerals and initially placed export controls on gallium and germanium last year. These metals are essential for integrated circuits used in the defense, electronics, high-performance computing, optics, and telecommunication industries.
Graphite is used in many critical industries, including refractories, lithium-ion batteries, foundries, lubricants, and others. It is also crucial in the defense sector. According to the US Geological Survey, China mines 77% of the world's graphite supply.
Four Chinese industry associations also expressed criticism and urged companies to refrain from buying US-designed chips, which might affect the sales of chipmakers such as Intel, AMD, Qualcomm, and Nvidia.
The China Semiconductor Industry Association (CSIA) warns that “the US government's arbitrary modification of trade rules has already caused substantial damage to the security and stability of the global semiconductor supply chain,” according to state media outlet Global Times.