China limits exports of crucial chip metals in semiconductor trade conflict.

China Imposes Restrictions on Critical Metals in Chip Production

China is taking a bold step in its ongoing trade war with the United States and Europe by imposing restrictions on critical metals used in chip and semiconductor construction. Starting August 1, gallium and germanium, two metals essential for high-level chip manufacturing, will be subject to export controls aimed at safeguarding Chinese national security.

Producers will now need to obtain a license from China’s Commerce Ministry to ship these metals overseas, and they will be required to provide detailed reports to the ministry. This move will have a significant impact as the majority of gallium and germanium exports come from China, severely limiting global access to these metals and potentially driving up chip production costs worldwide.

Concerns over Chip Sales to China

The United States Commerce Department is reportedly considering additional restrictions on chip sales to Chinese companies. If implemented, this decision would completely halt the ability of companies like Nvidia to sell chips in China. China has been increasingly aggressive in its restrictions on chip production, as seen in its ban on chips from U.S. chip maker Micron in May, citing national security concerns.

Furthermore, the Chinese government has reduced funding for chip manufacturing improvements, potentially slowing down the country’s progress in chip development compared to the United States.

U.S. Treasury Secretary Janet Yellen is scheduled to visit Beijing this week, aiming to enhance economic ties and trade between the two countries. This follows Secretary of State Antony Blinken’s recent meeting with President Xi Jinping, highlighting the importance of diplomatic efforts in resolving trade disputes.

Click here to read more from The Washington Examiner.

*As an Amazon Associate I earn from qualifying purchases