China is restricting exports of two key metals for semiconductor manufacturing, its Commerce Ministry said late Monday, escalating a technology trade war with Europe and the United States over access to microchips.
These new regulations, imposed for national security reasons, will require exporters to apply for permission to export some gallium and germanium compounds from August 1, China’s Ministry of Commerce said. said in a statement Monday afternoon.
This move is part of a global intensification battle for technological supremacy — with China the world’s largest source of both metals, according to a European Union study of critical raw materials this year.
In October, the US launched general rules addressed to cut exports of key chips and semiconductor tools to China. The measures are believed to have the potential to cripple China’s ambitions to boost their national technology industries. The United States has also lobbied key chip-making nations and allies, such as the Netherlands and Japan, introduce their own export restrictions.
The Netherlands responded on Friday with new export restrictions in advanced semiconductor equipment. This will effectively prevent ASML from exporting to China. But these latest Dutch curbs don’t specifically target ASML, one of the world’s largest semiconductor companies.
Some countries are also trying to secure their own supply chains and develop their domestic chip industries, focusing on areas where they are traditionally strong. Last week, a Japanese government-backed fund proposed a 903.9 billion yen ($6.3 billion) acquisition of semiconductor materials giant JSR.
Semiconductors are some of the most important technological products. They go into everything from smartphones to cars to refrigerators, and are also seen as key to military applications and the advancement of artificial intelligence.
