China responds in the chip war and limits the export of certain metals

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The clash between the great powers for chips writes a new chapter. China has announced limitations on the export of germanium and gallium, metals of which it is the largest producer and which are used in the manufacture of semiconductors, automobiles or defense equipment. Starting in August, Chinese exporters will need a permit to sell abroad. It will also apply to subsidiaries of foreign companies. In practice it will mean that the Government will have control to say who can operate and who cannot. The authorities are relying on national security arguments and claim that they are not targeting any specific country. But analysts see the decision as a response to efforts by the US and its partners, mainly Japan and the Netherlands, to curb Chinese technological advances. Some even see it as a welcome to the visit of US Treasury Secretary Janet Yellen, who is traveling to China this week.

The measure will come into force in August: orders and prices to collect increase The fear is that the Chinese decision will later extend to the export of rare earths, used in electric cars or military material and of Job Function Email Database  which China is the largest producer. For now, gallium and germanium prices have skyrocketed due to a sudden spike in demand from Europe, Japan and the US to supply before the measure comes into force. Japan, Germany and the Netherlands, the latter home to giants such as ASML, are the largest importers of gallium products from China, while Japan, France and Germany are of germanium, according to local media Caixin. Although they are substitutable metals and can be obtained in other territories, the abundance in that country and the low prices have made China the favorite source of access.



It is wishful thinking to suggest that another country can replace China in the near future or even in the future. medium," says Peter Arkell, director of the China Global Mining Association. In addition to semiconductors, it is used in solar panels, vehicle components or communications, space and defense equipment. Specifically, as of August 1, sales of eight products related to germanium and another six with gallium are limited to protect national security. This will force you to look for new suppliers. The chip market has been affected by measures and countermeasures The chip market moves between measures and countermeasures Florence Lo/Reuters The measure adds pages to the commercial shock of recent months. The US, Holland and Japan vetoed the shipment of chips to China in March to stop its developments in the military industry, artificial intelligence or quantum computing.