China restricts key chip metal exports in semiconductor trade war
Christopher Hutton
Video Embed
China is imposing restrictions on critical metals used in the construction of chips and semiconductors, the latest blow in the country’s trade war with the United States and Europe.
Gallium and germanium, two metals necessary for creating high-level chips, will be subject to export controls designed to protect Chinese national security starting August 1. Producers will have to apply for a license from China’s Commerce Ministry if they wish to begin or continue shipping the metals overseas and will be required to report details to the ministry.
CASES TO WATCH WHEN JUSTICES RETURN FROM RECESS
The majority of all gallium and germanium exports come from China, which means the decision will severely limit access to the metal and could increase the prices of chip production worldwide.
The United States Commerce Department was reportedly considering adding additional restrictions to chip sales to companies in China, a decision that would put a complete stop to the ability of companies like Nvidia to sell chips there.
China has grown increasingly aggressive in its restrictions on chip production. The country banned the use of chips from the U.S. chip maker Micron over alleged national security concerns in May.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The Chinese government has also cut back on government funding for improving chip manufacturing, which could slow the country’s ability to keep up with the U.S. in chip development.
U.S. Treasury Secretary Janet Yellen is scheduled to visit Beijing this week, where she will meet with Chinese officials with the aim of improving economic ties and trade between the two countries. She is the second Biden official to go to China after Secretary of State Antony Blinken met with President Xi Jinping last month.