China has just announced export restrictions on two rare earths widely used in the production of semiconductors.
The United States announced it last year. China is expected to face a very complicated year 2023 in the key semiconductor sector, with numerous restrictions imposed not only by Washington, but also by its allies such as Japan or the Netherlands. Beijing, which initially strongly protested, finally reveals its first countermeasures.
No more gallium or germanium
China could not sit in its seat as it watched its access to the most advanced semiconductors gradually being cut off by its American rival. Thus, at the beginning of last spring, it decided to put in place new internal guidelines in order to pursue its self-sufficiency measures more vigorously.
This strategy will be backed up by retaliatory measures, according to information from Bloomberg. Thus, the Chinese Ministry of Commerce will set up from 1er next August restrictions on the export of two rare earths essential for the production of semiconductors: gallium and germanium. Beijing alleges a need to protect its “ safety and [ses] national interests to justify his decision.
“ It’s only a beginning »
These two metals are important in the manufacture of many technological products, even beyond semiconductors. They are found in particular in solar panels, high-speed integrated circuits, or even in LEDs. China is by far the main producer of these rare earths, while other sources are also not at the best with the United States. In the case of germanium, the second producer, far behind Beijing, is… Russia. What create new geopolitical difficulties in an environment that is not lacking.
For many experts, this would be more of a warning than a measure intended to really hurt, and this, just days before the visit of the US Treasury Secretary Janet Yellen. The objective would thus be to push the allies to loosen the grip on China. If this were not the case, new, more vigorous measures could follow. As explained to China Daily former Vice Minister of Commerce Wei Jianguo: It’s only a beginning. »
Sources: PCMag, Reuters
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