Beijing announced on Tuesday its decision to impose export restrictions on critical semiconductor components to the United States, escalating tensions in the ongoing tech and trade war between the two global powers.
China’s Commerce Ministry stated that the ban, which takes effect immediately, covers essential materials like gallium, antimony, and germanium, all crucial for producing semiconductors, telecommunications equipment, and advanced military technologies. The ministry justified the restrictions by citing concerns over “national security” and the need to safeguard China’s strategic interests.
This move follows recent measures by Washington to curb China’s access to advanced semiconductor technologies, aiming to limit Beijing’s capacity to develop cutting-edge technologies with potential military applications. Analysts predict that these new export controls will further disrupt the global semiconductor supply chain and intensify the geopolitical rivalry between the U.S. and China.
Gallium and germanium, in particular, are vital for producing high-performance chips used in electric vehicles, aerospace, and defense industries, making the ban a significant blow to U.S. manufacturers dependent on these materials.
Exports of graphite, another critical material, will also face “stricter reviews of end-users and end-uses,” the ministry stated.
“To safeguard national security interests and fulfil international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States,” Beijing said.
The statement warned that “any organisation or individual in any country or region violating the relevant regulations will be held accountable according to the law.”
This move follows Washington’s latest measures on Monday, which imposed restrictions on sales to 140 companies, including Chinese chip firms Piotech and SiCarrier, without additional authorization.
Naura Technology Group, a manufacturer of chip production equipment, is also affected, according to the US Commerce Department.
The expanded US curbs target the export of advanced chips, which can be used in weapons systems and artificial intelligence, as well as controls on two dozen types of chip-making equipment and software tools.
Beijing responded swiftly, accusing the US of abusing export control measures and hindering normal economic and trade exchanges.
‘Weaponised’ trade
China also criticized Washington for “politicising and weaponising economic, trade, and technological issues,” as it introduced its own export curbs on Tuesday.
The new measures restrict the export of dual-use items to US military users or for military purposes.
China dominates global production of several critical materials: it accounts for 94% of gallium, used in integrated circuits, LEDs, and photovoltaic panels, and 83% of germanium, essential for fiber optics and infrared technologies, according to a European Union report.
Previously, Beijing had tightened restrictions on these metals by requiring exporters to disclose information about end users and their intended purposes. However, the latest measures now impose outright bans.
The new curbs also extend restrictions on exports of certain types of graphite, which is crucial for manufacturing batteries for electric vehicles.
“The move is clearly a retaliatory strike at the US,” said Chong Ja Ian, Associate Professor of Political Science at the National University of Singapore, in comments to AFP.
“Should these back-and-forth curbs affect trade for third parties, this could disrupt supply chains and create inflationary pressures,” he added.
