BEIJING – China’s Ministry of Commerce said on Thursday that the country informed the United States and Europe about this week’s export controls in advance.
China did so through “export control dialogue channels,” Commerce Ministry spokesman Shu Jueting said in Mandarin, translated by CNBC.
China is not targeting any specific country with the restrictions, he said, reiterating that their aim is to protect national security.
The Ministry of Commerce announced on Monday that from August 1, China would restrict exports of gallium and germanium, two metals used in the manufacture of semiconductors. That means companies in China must apply for licenses to export the metals. Porcelain produces most of the world’s gallium and germaniumThey are not found naturally but are produced by refining other metals.
The spokesman Shu said the ministry had not received any export license applications yet, noting that the rules will not take effect until August 1.
He told reporters more than once that the export restrictions are not a complete ban on exports and that applications that meet the requirements will be approved. Shu did not share details.
The US Treasury Department, the Office of the US Trade Representative and the EU Commission did not immediately respond to CNBC’s request for comment.
“Beijing’s new licensing regime is a warning shot aimed squarely at the United States, Japan and the Netherlands following a trilateral agreement earlier this year to coordinate chip export controls,” said Gabriel Wildau, managing director from the consulting firm Teneo, in a note on Wednesday.
“Japan, Germany, and the Netherlands are the world’s top importers of Chinese gallium by volume, while Japan, France, Germany, and the US lead germanium imports.”
Yellen’s visit to China
The news of the export restrictions came just days before the US Secretary of the Treasury. Janet Yellen was ready to start her visit to China Thursday.
China’s Ministry of Commerce separately announced that its minister, Wang Wentao, met with 12 foreign pharmaceutical companies, including GE HealthCare and Pfizer, on Wednesday. Wang said the ministry will set up regular round tables with foreign companies to respond to their concerns, according to the reading.
GE HealthCare and Pfizer did not immediately respond to a request for comment from CNBC.
Clement Tan, CNBC and Arjun Kharpal, CNBC contributed.
