Sebastien Le Belzic
China draws a new weapon in its technological war against the United States. From August 1, exports of gallium and germanium, two critical metals essential in advanced technologies, will be subject to prior authorization by Beijing.
Their name certainly means nothing to you. Gallium and germanium are rare but essential metals for the defense industry and new technologies. And China controls 80% of world production. For the Chinese government, it is a matter of striking American industry at heart and getting the United States to relax its policy of banning the sale of semiconductors to China.
New element on the negotiating table
“The Chinese government implements export controls on gallium-germanium-related products in accordance with law to ensure they are used for legitimate purposes, in order to safeguard national security,” Shu said. Jueting, spokesperson for the Chinese Ministry of Commerce. “Export control is not an export ban”, she insisted to the press, assuring that “licenses will be granted if exports comply with the regulations in force”.
The timing owes nothing to chance as US Treasury Secretary Janet Yellen is in Beijing until Sunday to try to revive trade between the two countries. This threat to exports of critical metals is a new element of weight on the negotiating table.