Editorial | Rare metals move by China shows need to find common ground
- Controls on exports of two materials come in the face of US semiconductor restrictions, and may reflect fears ‘tech war’ will spread to increasingly scarce resources
Among the rarest of rare metals, gallium and germanium are critical elements for making semiconductors and a wide range of other hi-tech products. So, China’s recent decision to impose controls on such exports has caused a global stir.
It would be a mistake to characterise the move as simply Beijing retaliating or seeking leverage against Washington and its allies for imposing chip restrictions on China, which below the surface is taking a long-term approach to protecting global supply chains as others try to shift them for their own purposes.
From August 1, Chinese exports of gallium, germanium and several other industrial compounds will be subject to restrictions to “safeguard national security and interests”.
The country’s commerce ministry and customs administration will require exporters to seek approval from the State Council, China’s cabinet, before shipping such items abroad.
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China restricts critical metal exports following Western semiconductor curbs in latest trade war
The measure was announced on Monday, just hours after the world learned of US Treasury Secretary Janet Yellen’s visit to Beijing this week.