China bans exports to US of gallium, germanium and antimony in response to microchip sanctions

BANGKOK — China announced Tuesday that it is banning exports to the United States of gallium, germanium, antimony and other key high-tech materials with potential military applications, as a general principle, attacking US limits on semiconductor-related exports.

China's Commerce Ministry announced the move after Washington expanded its list of Chinese companies subject to export controls on computer chip manufacturing equipment, software and high-bandwidth memory chips. Such chips are needed for advanced applications.

The tightened trade restrictions come as President-elect Donald Trump has threatened to sharply increase tariffs on imports from China and other countries, potentially intensifying simmering tensions over trade and technology.

China's Foreign Ministry also issued a vehement rebuke.

“China has lodged severe protests with the United States over its updated semiconductor export control measures, sanctions against Chinese companies, and malicious suppression of Chinese technological progress,” said Lin Jian, door – spokesperson for the Chinese Ministry of Foreign Affairs, during a routine press briefing on Tuesday.

“I would like to reiterate that China firmly opposes the United States overextending the concept of national security, abusing export control measures, and opposing illegal unilateral sanctions and arm's-length jurisdiction. long against Chinese companies,” Lin said.

China said in July 2023 that it would require exporters to apply for licenses to send strategically important materials such as gallium and germanium to the United States. In August, China's Commerce Ministry announced it would restrict exports of antimony, used in a wide range of products from batteries to weapons, and impose stricter controls on graphite exports.

These minerals are considered essential to national security. China is a major producer of antimony, which is used in flame retardants, batteries, night vision goggles and nuclear weapons production, according to a 2021 report from the U.S. International Trade Commission.

The limits announced by Beijing on Tuesday also include exports of ultra-hard materials, such as diamonds and other non-compressible and extremely dense synthetic materials. They are used in many industrial fields such as cutting tools, disc brakes and protective coatings. The licensing requirements announced by China in August also covered smelting and separation technologies and machines, as well as other items related to these ultra-hard materials.

China is the world's largest source of gallium and germanium, which are produced in small quantities but are needed to make computer chips for cell phones, cars and other products, as well as solar panels and technology military.

After the US side announced it was adding 140 companies to a so-called list of entities subject to strict export controls, China's Commerce Ministry protested and said it would act to protect rights and interests of China. Nearly all of the companies affected by Washington's latest trade restrictions are based in China, although some are Chinese companies in Japan, South Korea and Singapore.

Both governments say their respective export controls are necessary for national security.

The Chinese government has been frustrated by U.S. restrictions on access to advanced processor chips and other technologies for security reasons, but it has been cautious in its retaliation, perhaps to avoid disrupting new developers Chinese chip, artificial intelligence and other technologies.

Various Chinese industry associations have issued statements protesting the US decision to limit access to advanced chip manufacturing technology.

The China Automobile Manufacturers Association said it opposes the use of national security as a reason for export controls, abuse of export control measures, as well as blockade and repression malicious attacks from China.

Such behavior seriously violates the laws of market economy and the principle of fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain, and ultimately harms the interests of all countries, he said in a statement.

The China Semiconductor Industry Association issued a similar statement, adding that such restrictions disrupt supply chains and inflate costs for U.S. companies.

American chip products are no longer safe and reliable. China-linked industries will need to be careful in their purchases of U.S. chips, he said.

The United States gets about half of its supply of gallium and germanium directly from China, according to the U.S. Geological Survey. China exported about 23 tons (25 tons) of gallium in 2022 and produced about 600 tons (660 tons) of germanium per year.

The United States has deposits of these minerals but does not mine them, although some ongoing projects are exploring ways to exploit these resources.

Export restrictions have had a mixed impact on the prices of these essential minerals, with the price of antimony more than doubling this year to over $25,000 per tonne. Prices of gallium, germanium and graphite have also increased.

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AP researcher Yu Bing in Beijing contributed to this report.

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