China retaliates against latest US chip restrictions
China
has banned shipments to the US of several “dual-use” minerals and
metals used in semiconductor manufacturing and military applications, as
Beijing retaliates against the latest chip restrictions unveiled by the
Biden administration on Monday.
China’s commerce ministry on
Tuesday said it would not permit the export of dual-use items related to
gallium, germanium, antimony and super hard materials to the US, and
that it would implement stricter controls for graphite-related items.
“The
US has broadened the concept of national security, politicising and
weaponising trade and technology issues, and abused export control
measures,” it said in a statement.
“In order to safeguard
national security . . . China has decided to strengthen export controls
on dual-use items to the US,” it added, noting that the measures would
be effective immediately.
The embargoed minerals and metals are
used in the production of semiconductors and batteries, as well as in
military and communications equipment components. Beijing had already
been tightening controls on their export in response to western chip
sanctions.
China produces 98 per cent of the world’s supply of gallium and 60 per cent of germanium, according to the US Geological Survey.
Washington
on Monday imposed a range of new sanctions designed to slow the
development of China’s semiconductor industry. There were tougher
restrictions on the export of critical semiconductor manufacturing tools
and a ban on the export of advanced high bandwidth memory (HBM) chips —
a crucial component in artificial intelligence products — to the
country.
Anonymous
I do not honestly think that USA or Western investors will be going into setting up the facilities en masse for the extraction of recycled gallium and germanium from old computers, washing machines, solar panels and smartphones. It is too costly and knowing the end items are competing with China. If they really do that, well it is up to them to throw good money after bad.
ReplyDeleteThe wholes process of even trying to extract those rare earth minerals from the ground is already a huge challenge. What about the setting up of the refining logistics to make those rare earth raw materials into useful metals? The investments to do that are not puny, coupled with the environmental effects it will cause to the country doing that.
The USA is trying to be chummy towards Vietnam to come together to allow them to extract Vietnam's rare earth deposits, ranked second in the world. Who wants to fund the setting up of the facilities to do the job and will they be competitive enough to rival China? Do the Vietnamese trust the USA again, the destructor of their country and killing millions during the Vietnam War?
The USA even tried its luck with Mongolia and found the idea unfeasible, with China disallowing its ports to be used to ship the ores to Japan for refining. There was even talk of lifting the ores by air to Japan, but that was also impossible, having to fly over Russian and Chinese airspace. China and Russia will not allow that to happen. Mongolia had to eat humble pie after that and tried to be chummy to China.
As I said before, time for China to fully weaponize its control of essential raw materials for National Security reasons. National Security reasons is one excuse that is now a very useful invention for mankind, LOL.
US$ is also the most overprinted currency in the world. There is a massive 'overcapacity' causing massive problems for the rest of the world by its inflation exporting moves.
ReplyDeleteWhile the USA is exporting its inflation globally, China is exporting its deflation by providing ever cheaper goods for the world. And China's overcapacity in doing that is bad and must be taken down.
No, not the $$ But Toilet Paper. This toilet paper can be use at home, outside & most importantly the Military. So all toilet paper producer should stop selling it to the USAss. Let the american use their own currency to wipe their own backside..hahahah
ReplyDelete