China bans gallium, germanium and antimony exports to the US in response to chip sanctions

China bans gallium, germanium and antimony exports to the US in response to chip sanctions

BANGKOK – China announced Tuesday that it is essentially banning the export of gallium, germanium, antimony and other key high-tech materials with potential military applications to the United States, challenging U.S. limits on semiconductor exports.

China’s Commerce Ministry announced the move after Washington expanded its list of Chinese companies subject to export controls on equipment used to make high-bandwidth computer chips, software and memory chips. Such chips are required for advanced applications.

The tightening of trade restrictions comes as President-elect Donald Trump has threatened to sharply increase tariffs on imports from China and other countries, potentially exacerbating simmering trade and technology tensions.

The Chinese Foreign Ministry also expressed a vehement rebuke.

“China has lodged strong protests with the US over the updating of semiconductor export control measures, the sanctions against Chinese companies and the malicious suppression of China’s technological progress,” Lin Jian, a spokesman for China’s Foreign Ministry, said in a routine news conference on Tuesday.

“I would like to reiterate that China strongly opposes the US overstretching the concept of national security, abusing export control measures, and imposing illegal unilateral sanctions and protracted jurisdiction against Chinese companies,” Lin said.

China said in July 2023 it would require exporters to apply for licenses to ship strategically important materials such as gallium and germanium to the United States. In August, China’s Commerce Ministry said it would restrict exports of antimony, used in a variety of products from batteries to weapons, and impose stricter controls on exports of graphite.

Such minerals are considered critical to national security. According to a 2021 report from the US International Trade Commission, China is a major producer of antimony, used in flame retardants, batteries, night vision goggles and nuclear weapons production.

The limits announced by Beijing on Tuesday also include the export of super-hard materials such as diamonds and other synthetic materials that are incompressible and extremely dense. They are used in many industrial areas such as cutting tools, disc brakes and protective coatings. The licensing requirements announced by China in August also covered melting and separation technology, as well as machinery and other items related to such super-hard materials.

China is the world’s largest supplier of gallium and germanium, which are produced in small quantities but are needed to make computer chips for cell phones, cars and other products, as well as solar panels and military technology.

After the US side announced it would add 140 companies to a so-called “entity list” subject to strict export controls, China’s Commerce Ministry protested, saying it would act to protect China’s “rights and interests.” Almost all of the companies affected by Washington’s latest trade restrictions are based in China, but some are Chinese companies in Japan, South Korea and Singapore.

Both governments say their respective export controls are necessary for national security.

China’s government has been frustrated with the U.S. restricting access to advanced processor chips and other technologies for security reasons, but has been cautious about retaliating, perhaps so as not to disrupt China’s young developers of chips, artificial intelligence and other technologies.

Various Chinese industry associations issued statements protesting the US move to restrict access to advanced chip manufacturing technology.

The China Association of Automobile Manufacturers said it opposed using national security as a justification for export controls, “the abuse of export control measures and the malicious blockade and oppression of China.”

“Such behavior seriously violates the laws of market economy and the principle of fair competition, undermines the international economic and trade order, disrupts the stability of the global industrial chain and ultimately harms the interests of all countries,” it said in a statement.

The China Semiconductor Industry Association issued a similar statement, adding that such restrictions disrupted supply chains and drove up costs for American companies.

“US chip products are no longer safe and reliable. China’s related industries need to be careful when purchasing US chips,” it said.

According to the US Geological Survey, the US sources about half of its supply of gallium and germanium metals directly from China. China exported about 23 tons (25 tons) of gallium in 2022 and produces about 600 tons (660 tons) of germanium per year.

The United States has deposits of such minerals but has not mined them, although some ongoing projects are exploring ways to develop these resources.

The export restrictions have had a mixed effect on prices for these critical minerals: The price of antimony has more than doubled this year to over $25,000 a ton. The prices for gallium, germanium and graphite have also mostly risen.

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AP researcher Yu Bing in Beijing contributed to this report.

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