Jakarta –
Chinese government will limit exports of chip-making materials, namely gallium and germanium starting August 1, 2023. This is a form of retaliation after the United States (US) and the Netherlands restricted exports of chip-making equipment to China.
“Exports of gallium and germanium will be regulated from August 1. This is to protect national security and interests,” China’s Ministry of Commerce said in a statement quoted by CNN, Wednesday (5/7/2023).
This regulatory restriction requires Chinese exporters to apply for a special permit from the Chinese government if they wish to ship gallium and germanium products overseas.
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Gallium and germanium are needed for a variety of products including computer chips and solar panels. Both are on the list of raw materials considered essential to the European Union’s economy.
According to the US Geological Survey, China is the largest gallium producing country in the world. Not only that, China is also the largest global germanium exporter.
China’s announcement of curbs on exports of chip-making materials comes ahead of a visit by US Treasury Secretary Janet Yellen to Beijing from July 6-9, 2023. She is scheduled to meet senior Communist Party officials.
The US and Dutch governments previously announced restrictions on exports of chip-making equipment to China, in their bid to sanction Chinese chip makers this summer. This is because the US and the Netherlands are concerned that their technology is being used to strengthen China’s military.
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