China hits back in the chip war, imposing export curbs on crucial raw materials

[etylo]

China hits back in the chip war, imposing export curbs on crucial raw materials​

By Hanna Ziady and Xiaofei Xu, CNN

Published 12:27 PM EDT, Mon July 3, 2023


London/Paris CNN —

Beijing will impose export controls on two rare elements essential for manufacturing semiconductors, in apparent retaliation after the United States and Europe restricted chip exports to China.

Gallium and germanium will be subject to export controls starting August 1 “to protect national security and interests,” China’s Ministry of Commerce said in a statement Monday.

Exporters of these raw materials will need to apply for “special permission from the state” to ship them out the country, the statement said.






Gallium and germanium are used in a variety of products, including computer chips and solar panels. Both are on the European Union’s list of critical raw materials, which are deemed “crucial to Europe’s economy.”


China is by far the world’s biggest gallium producer and a leading global producer and exporter of germanium, according to the U.S. Geological Survey.


The measure is the latest development in the global battle to control chipmaking technology, which is vital for everything from smartphones and self-driving cars to advanced computing and weapons manufacturing.


Beijing’s move comes just days after the Dutch government announced new restrictions on exports of some semiconductor equipment, drawing an angry response from Beijing, according to Reuters. The new rules mean that ASML (ASML), Europe’s largest tech firm, will need to apply for export licenses for products used to make microchips.


Japan and the United States have also taken steps to limit Chinese companies’ access to chips and chipmaking equipment. Italy last month imposed several curbs on Pirelli’s biggest shareholder, Sinochem, to block the Chinese government’s access to sensitive chip technology.


An editorial Monday in a prominent state-owned newspaper China Daily hinted that Beijing’s new policy was retaliation for similar moves by Washington and its allies.


Critics of the decision “could ask the US government why it holds the world’s largest germanium mines but seldom exploits them. Or they could ask the Netherlands why it included certain semiconductor-related products… in its export control list,” the editorial said.


China’s announcement of the new export curbs comes on the eve of a visit by US Treasury Secretary Janet Yellen to Beijing from July 6 to July 9. Yellen will meet with senior Communist Party officials, according to a statement from the Treasury.

https://www.cnn.com/2023/07/03/business/germanium-gallium-china-export-restrictions/index.html

 

[ARMalik]

It is apparent that the World is splitting into two blocks at least if not more. One led by US Rascals, and the other led by China/Russia. But you know what, Pakistani GHQ Generals will continue to the lick the hind sides of their White masters sitting in US and UK, and in the process continue to keep 250-million people in poverty, corruption and a pathetic life style compared to failed states in Africa.

 

[nahtanbob]

It is apparent that the World is splitting into two blocks at least if not more. One led by US Rascals, and the other led by China/Russia. But you know what, Pakistani GHQ Generals will continue to the lick the hind sides of their White masters sitting in US and UK, and in the process continue to keep 250-million people in poverty, corruption and a pathetic life style compared to failed states in Africa.

Correction - It is not Pakistani generals who solely decide such things. China has to make calls on who to support. Ditto with the West

 

[silverox]

China should find one or several raw materials that only China has. Prohibition of export

 

[MH.Yang]

China should find one or several raw materials that only China has. Prohibition of export

Gallium is a semiconductor raw material, which is also a necessary raw material for all electronic components.

The global production of gallium is 376.6 tons, of which China produces 356.6 tons.

The good news is that one country is able to produce 13 tons of gallium.

The bad news is that that country is Russia.

The good news is that Ukraine is able to produce 4 tons of gallium per year.

The bad news is that Ukraine's gallium plant is in Donbass.

The good news is that the producers of the remaining 3 tons of gallium are Japan and South Korea.

The bad news is that the Japanese and South Korean plants need to import raw materials from China.



BTW: This is just the first card that China has played. China's real trump cards are rare earths and tungsten.

 

[ziaulislam]

It is apparent that the World is splitting into two blocks at least if not more. One led by US Rascals, and the other led by China/Russia. But you know what, Pakistani GHQ Generals will continue to the lick the hind sides of their White masters sitting in US and UK, and in the process continue to keep 250-million people in poverty, corruption and a pathetic life style compared to failed states in Africa.

Problem is they are too much h intertwined

India rise might make decoupling from China possible but that's something that will take time.

Pakistan...? Who cares!

Pakistan won't even exist the way things are going...let's talk about bengaldesh Vietnam and in the near future Afghanistan

 

[GreatHanWarrior]

Gallium is a semiconductor raw material, which is also a necessary raw material for all electronic components.

The global production of gallium is 376.6 tons, of which China produces 356.6 tons.

The good news is that one country is able to produce 13 tons of gallium.

The bad news is that that country is Russia.

The good news is that Ukraine is able to produce 4 tons of gallium per year.

The bad news is that Ukraine's gallium plant is in Donbass.

The good news is that the producers of the remaining 3 tons of gallium are Japan and South Korea.

The bad news is that the Japanese and South Korean plants need to import raw materials from China.



BTW: This is just the first card that China has played. China's real trump cards are rare earths and tungsten.

We must be cautious. Now many countries are starting to steal Chinese technology.

 

[GreatHanWarrior]

Problem is they are too much h intertwined

India rise might make decoupling from China possible but that's something that will take time.

Pakistan...? Who cares!

Pakistan won't even exist the way things are going...let's talk about bengaldesh Vietnam and in the near future Afghanistan

India's per capita GDP will reach $10,000 in about 2040. But it's hard to make progress. and Indian manufacturing is still in the validation phase. Not really started. Pakistan still has a chance.

 

[ziaulislam]

India's per capita GDP will reach $10,000 in about 2040. But it's hard to make progress. and Indian manufacturing is still in the validation phase. Not really started. Pakistan still has a chance.

Pakistan has more resources then India or bengaldeah

That's not the point

The point is attitude of people and the military junta

Even if Pakistan had more oil then saudis it wouldn't have mattered

 

[MeFishToo]

Gallium is a semiconductor raw material, which is also a necessary raw material for all electronic components.

The global production of gallium is 376.6 tons, of which China produces 356.6 tons.

The good news is that one country is able to produce 13 tons of gallium.

The bad news is that that country is Russia.

The good news is that Ukraine is able to produce 4 tons of gallium per year.

The bad news is that Ukraine's gallium plant is in Donbass.

The good news is that the producers of the remaining 3 tons of gallium are Japan and South Korea.

The bad news is that the Japanese and South Korean plants need to import raw materials from China.



BTW: This is just the first card that China has played. China's real trump cards are rare earths and tungsten.

Gallium is a semiconductor raw material, which is also a necessary raw material for all electronic components.

The global production of gallium is 376.6 tons, of which China produces 356.6 tons.

The good news is that one country is able to produce 13 tons of gallium.

The bad news is that that country is Russia.

The good news is that Ukraine is able to produce 4 tons of gallium per year.

The bad news is that Ukraine's gallium plant is in Donbass.

The good news is that the producers of the remaining 3 tons of gallium are Japan and South Korea.

The bad news is that the Japanese and South Korean plants need to import raw materials from China.



BTW: This is just the first card that China has played. China's real trump cards are rare earths and tungsten.

Gallium is not a rare metal. Its a bi-product from refining of other material. China reducing exports will only lead to other suppliers rising production.

 

[MH.Yang]

We must be cautious. Now many countries are starting to steal Chinese technology.

View attachment 936828

China and the U.S. are about to engage in real negotiations. Both countries have been preparing some negotiating chips recently.

 

[GreatHanWarrior]

China and the U.S. are about to engage in real negotiations. Both countries have been preparing some negotiating chips recently.

But Canada is stealing China's optical technology. They may disrupt the China-US negotiations.

 

[MH.Yang]

Gallium is not a rare metal. Its a bi-product from refining of other material. China reducing exports will only lead to other suppliers rising production.

Gallium ore is an associated ore of bauxite, and gallium is a by-product of aluminum electrolysis.

70+% of gallium reserves are in China, and the global bauxite ore is largely in the hands of Chinese companies.

It takes 10 to 20 years to build an electrolytic aluminum plant. What's worse is that the market for electrolytic aluminum is also controlled by China.

 

[MeFishToo]

Gallium ore is an associated ore of bauxite, and gallium is a by-product of aluminum electrolysis.

70+% of gallium reserves are in China, and the global bauxite ore is largely in the hands of Chinese companies.

It takes 10 to 20 years to build an electrolytic aluminum plant. What's worse is that the market for electrolytic aluminum is also controlled by China.

Even without considering the bauxite production capacity, there are only 4,500 tons of gallium ore to be mined in the entire West.

The only reason China is leading producer is because of low prices. Lots of countries just shot down production, but will restart if prices go up.

 

[LeGenD]

It is apparent that the World is splitting into two blocks at least if not more. One led by US Rascals, and the other led by China/Russia. But you know what, Pakistani GHQ Generals will continue to the lick the hind sides of their White masters sitting in US and UK, and in the process continue to keep 250-million people in poverty, corruption and a pathetic life style compared to failed states in Africa.

WE should do business with all.