Before US Treasury Secretary Janet Yellen’s visit to Beijing, the Chinese government imposed curbs on the shipments of two important minerals needed to produce computer chips.
In order to safeguard its interests and national security, China’s Commerce Ministry said that as of August 1 it will regulate exports of six germanium goods and eight gallium products.
According to the BBC, the action follows Washington’s attempts to limit Chinese access to select cutting-edge microprocessors.
The metals are used in the manufacture of semiconductors, electronic devices, and weapons. According to the paper, they are also important components in goods like solar panels.
AXT, a US manufacturer of semiconductor wafers, said that it will continue to apply for permission to export Chinese goods made from substrates for gallium and germanium.
Morris Young, CEO of AXT, said, “We are actively obtaining the appropriate approvals and are striving to reduce any possible inconvenience to our clients.
The current restrictions are the latest shot in an increasing conflict between China and the US for access to high-tech microchips, claims the South China Morning Post.
Eighty percent of the world’s production of the two minerals was controlled by China, according to analysts at Jefferies.
Analysts believe that the limits are partly a reaction to a future tightening of the AI chip ban by the US.
The leading purchasers of Chinese gallium goods in 2022 were Japan, Germany, and the Netherlands.