China Bans Gallium, Germanium, and Antimony Exports to the US

China has recently intensified its export restrictions to the United States, which follows new U.S. regulations targeting the Chinese chip industry. The trade tensions between the two nations are escalating.

Recent Export Bans

On December 3, China banned exports of critical minerals to the U.S., which includes gallium, germanium, and antimony. The ban aims to safeguard national interests. These minerals are vital for military and technological applications.

New Regulations on Dual-Use Products

Effective December 1, new regulations on dual-use products were introduced. Exporters must now disclose the end-users of these products. This measure aims to monitor supply chain dependencies, particularly in the U.S. military sector.

Previous Restrictions

Earlier bans targeted gallium and germanium, which are essential for chip manufacturing. The restrictions were justified by national security concerns. Additionally, technology for producing rare earth magnets was also prohibited in December 2023.

Actions Against U.S. Companies

China has taken further actions to protect its interests. In May 2023, it blocked government purchases from U.S. chipmaker Micron. This occurred after Micron failed a security review. Intel may face similar scrutiny due to its extensive operations in China. Beijing has employed various retaliation tactics, which include slowing customs clearance and increasing inspections of U.S. firms. In September 2023, an investigation was launched into PVH Corp for not using Xinjiang cotton.

The Unreliable Entity List

China’s “unreliable entity list” targets foreign companies deemed harmful to its interests. Companies like Lockheed Martin and Raytheon have been included for selling arms to Taiwan. This list serves as a warning to foreign businesses.

Anti-Foreign Sanctions Law

In 2021, China enacted an anti-foreign sanctions law, which enables China to sanction foreign firms that threaten its national security. U.S. company Skydio experienced sanctions that restricted its access to batteries. As U.S.-China tensions escalate, businesses may encounter rising costs and challenges. State-run media suggest that these actions will complicate international trade dynamics.

Important Facts for Exams:

1. Gallium: Gallium is a critical mineral used in semiconductor manufacturing. It has unique properties that make it essential for high-tech applications, particularly in electronics and optoelectronics.
2. Unreliable Entity List: This list identifies foreign companies that China considers harmful to its interests. It serves as a tool for the Chinese government to exert economic pressure on foreign businesses.
3. Dual-Use Products: Dual-use products have both civilian and military applications. Regulations require exporters to disclose end-users to monitor potential military misuse, particularly concerning national security.
4. Anti-Foreign Sanctions Law: Enacted in 2021, this law allows China to sanction foreign firms perceived as threats. It aims to protect national security and retaliate against foreign sanctions.

Month: Current Affairs - December, 2024

Category: Defence Current Affairs