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China responds to US chip sanctions with export bans on key high-tech materials

China responds to US chip sanctions with export bans on key high-tech materials

China has declared a ban on the export of critical materials such as gallium, germanium, and antimony to the United States, effective immediately.

This announcement, made by the Chinese Commerce Ministry on Tuesday, follows Washington’s recent sanctions targeting Beijing’s chip sector, which were justified by “national security” concerns.

The newly imposed restrictions focus on dual-use items that can serve both military and civilian purposes.

Additionally, the regulations will enforce stricter oversight on the end-use of graphite products exported to the US.

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“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry said.

The increase in trade restrictions comes at a time when President-elect Donald Trump, who will take office in Washington next month, has been threatening to raise tariffs on imports from China.

Beijing said in July 2023 it would require exporters to apply for licenses to send to the US materials such as gallium and germanium.

In August 2024, the Chinese Ministry of Commerce announced export control measures on antimony and related items to take effect on September 15. Antimony is used in a wide range of products from batteries to weapons.

China is the biggest global source of gallium and germanium, which are produced in small amounts but are needed to make computer chips for cell phones, cars and other products, as well as solar panels and military technology.

China’s announcement comes after the US on Monday launched its third crackdown in three years on China’s semiconductor industry.

It curbed exports to 140 Chinese firms, including chip equipment maker Naura Technology Group, to a so-called “entity list” subject to strict export controls.

Beijing’s Commerce Ministry protested and said it would act to protect China’s “rights and interests.”

In response to China’s announcement on Tuesday, the White House said it would take “necessary steps to mitigate any Chinese “coercive actions.”

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