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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 superhard 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.
The curbs on shipments of germanium and gallium have led to an almost twofold increase in the minerals’ prices in Europe and have highlighted Beijing’s dominance of the global supply of dozens of crucial resources.
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.
