China will reduce exports of gallium and germanium, which are widely used in the semiconductor industry for the production of microcircuits.
China will restrict the export of products containing gallium and germanium – metals critical for high-performance microcircuits, 5G communication stations and solar panels. It was reported by The Wall Street Journal.
China’s Ministry of Commerce said in a statement that the new rule will take effect on Aug. 1 and is intended to “protect national security and interests.”
Exporters have to go through procedures to obtain export licenses, and anyone who exports these products without permission, as well as those who export more than the permitted quantity, will be punished.
The announcement came ahead of Treasury Secretary Janet Yellen’s visit to China to meet with senior Chinese officials. US Commerce Secretary Gina Raimondo said she also plans to visit China in the coming months.
According to the estimates of microchip manufacturers, this step by the Chinese side will have an immediate impact on the entire industry. It is noted that although the value of Chinese exports of gallium and germanium is only 36 million and 54 million dollars, respectively, “the impact of export restrictions may still be greater.”
China and the US are competing for technological dominance in areas such as artificial intelligence, quantum computing and clean energy technologies.
As you know, the United States is putting pressure on other countries to prevent China from developing its own semiconductor industry and making progress in areas such as artificial intelligence, quantum computing. The US has also imposed its own export restrictions, preventing the sale of some advanced chips and equipment for their production to China.
In China, they say that these measures are aimed at preventing economic growth in the country.
It was previously reported that Japan will restrict the export of equipment for the production of chips to China. The Netherlands is also understood to be preparing similar restrictions.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.