7/04/2023

China to impose export controls on key materials for chipmaking as West's 'chip war' escalates

Beijing. July 03 - China will impose export controls on gallium and germanium, both used in the making of semiconductors and other electronic components, starting next month to safeguard national security and interests, two ministries announced on Monday.

"In order to safeguard national security and interests, with the approval of the State Council, it is decided to implement export controls on items related to gallium and germanium," the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) said in a notice.

According to the notice, starting on August 1, items meeting certain characteristics shall not be exported without approval. The ministries listed eight items related to gallium, and six items related to germanium.

Under the export control, exporters must file an application with local commerce authorities for exports of the relevant items and must be approved by the Ministry of Commerce before exporting such items. Exporters would face fines and criminal charges, if they export such items without permission.

Both gallium and germanium are key in the making of semiconductors and other electronics. For example, germanium is used in fiber optics and semiconductors, while gallium is used in making chipsets for electronic devices such as computer motherboards or portable phones, according to media reports.

China is the world's top producer of raw gallium, which is used in making chipsets to generate high frequency raid waves in 5G base stations, accounting for 95 percent of the global output, according to industry information provider Fierce Electronics.

China is also a major supplier of germanium, which is mainly used in fiber and infrared optics, PET plastics, electronics and solar panels. The EU has listed the metal as a critical raw material, as it imports about 17 percent of its supplies from China, according to media reports.

While the notice issued by the MOFCOM and GAC on Monday did not go into detail of what prompted the move, apart from saying it aims to protect national security and interests, the move comes as the US and some of its allies are relentlessly stepping up crackdowns on China's technological development in various fields, including semiconductors.

For example, in the latest move, under mounting pressure from Washington, the Netherlands' government last week announced a ministerial order restricting exports of certain advanced semiconductor equipment. As a result, Dutch chipmaking equipment giant ASML said that due to these export control regulations, ASML will need to apply for export licenses with the Dutch government for all shipments of its most advanced immersion DUV lithography systems.

China has repeatedly voiced dissatisfaction over the Dutch move and called on the Dutch government to respect market principles and contractual spirits in order to avoid damage to bilateral cooperation. Chinese officials have also slammed the US' abuse of export control measures to maintain its hegemony, while creating disruption to global supply chains.

As the US and its allies continue to escalate their chip war and technological crackdown, it is normal and indeed crucial for China to take proactive measures to safeguard its technological development and national security and interests, Chinese industry analysts said.

Anonymous

7 comments:

Anonymous said...

Link to article: https://www.zerohedge.com/markets/more-dedollarization-indian-refiners-payments-russia-argentina-payment-imf-both-yuan

'China controls the world's processing and refining of rare earth metals. These metals have become essential for producing electric vehicles, wind turbines, solar panels, and high-tech defense weapons.

Gallium is most common in semiconductors, transistors, and small electronic devices. It's also used to make LEDs. As for military-grade Gallium Nitride, it's found in cutting-edge weapon technology that US defense companies produce.

Three of the most common uses for germanium are rectifiers, transistors, and weapons-sighting systems.

Meanwhile, China has already placed Lockheed Martin and a unit of Raytheon Technologies on an "unreliable entities list" over weapon sales to Taiwan.

Suppose China intends to limit the export of rare earth metals crucial for manufacturing high-tech chips for the US defense industry. In that case, this is a major wake-up call to the military-industrial complex that would need to quickly rejigger its supply chains and or boost domestic spending to increase mining and refining capabilities.'

Anonymous said...

White Anglo Saxons has always seen Chinese as weak just because we are not the confrontational type.

It is about time CN take proactive action. No more diplomatic nice words that these Anglo Saxons conveniently ignore.

Anglo Saxons only understand 1 language, action & in their face type of action.

Anonymous said...

China's thinking had always been - 'live and let live'. That is why interference in other country's affairs is not a priority. China could have exerted control over countries since the days of Admiral Cheng ho. Even Mathathir knows that period of history and what the Portugese did by comparison.

USA's thinking had always been - 'We live to make you die for us'. That is what is happening in Europe. And that is what is going to happen to ASEAN, South Korea and Japan. China will pay back South Korea and Japan in their own coins when the time comes. Retaliation will be calibrated to reap maximum pain. It would not be on the spur of the moment. Chinese believe that taking revenge ten years down the road is never too late.

China must change its thinking and it is not too early, I should say. Janet Yellen is visiting China again, uninvited, on the pretext of repairing and managing ties. Nothing is further from the truth and is all 'theater'. It is about asking China for help to buy USA debts. Nothing more, nothing less. They can fool the Whites and those at home, but not Chinese leaders or those that can read between the lines. If China relents, USA leaders will again turn around and spill vile and continue with poisonous outburst. They did that after Blinken's visit. That they did not do it prior to the visit does not preclude their doing it post visit.

China must not forget what the USA did after the Lehman Brothers financial crisis by helping the USA. What did the USA do to China after that? Nothing that happened spells repaying helpfulness with kindness, but instead rewarding China with visciousness, ungrateful behavior and accusations. It was all the direct opposite of what Asians would expect. Asians, particularly the Chinese, are not as backward as the days of laundrymen and cooks. Those days when they just take injustice without response is long gone.

Anonymous said...

China must wakeup not to used taichi chuan to fight MMA. In social media Taijiquan practicians were beaten by MMA beginner in seconds. American adopted MMA, fears attack and confronting, quick and fast. Within seconds blood would be spilled. China must upgrade to MMA like. Knocking out American is the only option, don't be gentle any more. You can't tame a wild horse by being gentle.

Anonymous said...

America football are confrontative and rough compared to China ping pong. There are no way to expect American to become gentleman. China can't be complacent and show mercy to America. France help American defeated British in the Civil war. See how USA mistreated France today. The current riot in france are back by USA. It was similar to riot in HK.

Virgo49 said...

https://youtu.be/J9BhaFDfvSc

China stop supply of their Rare Earth.

Cheers

Virgo49 said...

https://youtu.be/If1XBWfh2VI

Latest one

Cheers