China bans export of critical metals to the United States

2024-12-03 22:37:45, Kosova & Bota CNA

China announced on Tuesday that it is banning the export of gallium, germanium and antimony metals and other high-tech materials that can be used in the military as a matter of principle, in retaliation for restrictions that the United States The United States has imposed restrictions on exports related to semiconductors.

China's Ministry of Commerce announced the decision after Washington expanded the list of Chinese companies to be subject to export controls on equipment for the production of computer microprocessors and high capacity data storage microprocessors. Such microprocessors are needed for more advanced applications.

This tightening of trade restrictions comes at a time when President-elect Donald Trump has threatened to multiply tariffs on imports from China and other countries, which could escalate tensions over trade and technology.

China's Foreign Ministry also made a firm statement.

"China has strongly protested the United States' decision to update export control measures on semiconductors, sanctions against Chinese companies and malicious suppression of China's technological progress ," Chinese Foreign Ministry spokeswoman Lin Jian said on Tuesday.

"We want to emphasize that China opposes this over-extension of the concept of national security, abuse of export control measures, illegal and unilateral sanctions and jurisdiction where it does not belong," spokeswoman Lin said.

Minerals mined in China are used for computer microprocessors, vehicles

In July 2023, China announced it would require exporters to apply for permits in order to ship strategically important metals such as gallium and germanium to the United States.

In August, China's Ministry of Commerce said it would limit exports of antimony, which is used in a range of products from batteries to weapons, and impose tougher controls on graphite exports.

Such minerals are considered critical to national security. China is a significant producer of antimony, which is used in fire suppression equipment, batteries, night vision goggles and the production of nuclear weapons, according to a report by the US International Trade Commission.

The restrictions imposed by Beijing on Tuesday also include other solid materials, such as diamonds and synthetic materials. They are used in many industrial fields including cutting tools, brake discs and protective surfaces. Criteria for the permits that China announced in August also include metal smelting and separation technology and other machinery related to the processing of these solid materials.

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

China says it is defending itself against US trade restrictions

After the US announced it was adding 140 companies to the so-called "entity list" to be subject to strict export controls, the Chinese Ministry of Commerce protested and said it would act to protect China's "rights and interests". Almost all of the companies affected by Washington's latest export restrictions are located in China, although some companies with Chinese owners are also in Japan, South Korea and Singapore.

Both governments say their export control decisions are necessary for their national security.

China's government has been angered by restrictions imposed by the United States on access to advanced microprocessors and other technologies for security reasons, but has been cautious in its response, perhaps in an effort not to hinder China's electronics sector. the development of microprocessors, artificial intelligence and other technologies, which is in the initial stage.

Various Chinese industry associations have made statements to protest against US measures that limit their access to technology for the production of advanced microprocessors.

The Chinese Association of Automobile Manufacturers said it opposes the use of national security as a basis for export controls, and as it put it, "abuse of export control measures, as well as malicious blockade and oppression of China . "

"Such behavior seriously violates the laws of the market economy and the principle of fair competition, undermines the international economic and trade regime, disrupts the stability of the world industrial chain and ultimately damages the interests of all states ," the statement said.

The China Semiconductor Industry Association made a similar statement, adding that such restrictions were disrupting supply chains and adding to costs for US companies.

"American microprocessor products are no longer safe or durable. "Certain Chinese industries should be cautious when purchasing American microprocessors ," the statement said.

The United States gets half of its supply of gallium and germanium metals from China, according to the United States Geological Survey. China exports about 25 tons of gallium in 2022 and produces about 660 tons of germanium annually. The United States has reserves of such minerals, but has not mined them, although several projects are underway to examine ways it can exploit these resources.

Export restrictions have had a mixed impact on the prices of these critical minerals. The price of antimony has doubled this year to $25,000 per ton. The prices of gallium, germanium and graphite have also increased./ VOA