China has swiftly retaliated against the United States’ latest semiconductor-related export controls by banning the export of critical minerals used in chip manufacturing and military equipment. The move underscores escalating tensions between the two global powers as they vie for dominance in technology and trade.
The Chinese Ministry of Commerce announced the restrictions, effective immediately, targeting gallium, germanium, antimony, and other key materials. It accused Washington of weaponising trade under the guise of national security.
Escalating technology battle
This latest ban follows the US unveiling stricter export controls aimed at hindering China’s artificial intelligence development, particularly for military purposes. These controls include restrictions on advanced semiconductor tools and high bandwidth memory (HBM) chips.
China’s decision to block mineral shipments highlights its willingness to leverage its dominance in critical resources, as the country produces 98 per cent of the world’s gallium and 60 per cent of germanium. Previous restrictions on these materials have already led to price surges in Europe, and the latest embargo is expected to further strain supply chains
Ripple effects across industries
China’s trade associations have responded to the US measures by advising their members to reduce reliance on American chips, citing security concerns. The affected minerals are essential for semiconductors, batteries, and military equipment, with the ban likely to disrupt global manufacturing.
Analysts suggest this marks a shift in China’s strategy, as Beijing pushes back harder against Western restrictions. Meanwhile, the US National Security Council stated it is assessing the situation and pledged to work with allies to diversify supply chains away from Chinese dominance.
Content retrieved from: https://www.firstpost.com/tech/china-fights-back-against-us-new-chip-restrictions-blocks-export-of-key-minerals-needed-in-chipmaking-13841474.html.
