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Today's Topics:
1. China bans exports to US of gallium, germanium, antimony in
response to chip sanctions (Kim Holburn)
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Message: 1
Date: Wed, 4 Dec 2024 10:22:21 +1100
From: Kim Holburn <[email protected]>
To: Link mailing list <[email protected]>
Subject: [LINK] China bans exports to US of gallium, germanium,
antimony in response to chip sanctions
Message-ID: <[email protected]>
Content-Type: text/plain; charset=UTF-8; format=flowed
https://abcnews.go.com/Business/wireStory/china-bans-exports-gallium-key-high-tech-materials-116399597
BANGKOK -- China announced Tuesday it is banning exports to the United States
of gallium, germanium, antimony and other key
high-tech materials with potential military applications, as a general
principle, lashing back at U.S. limits on
semiconductor-related exports.
The Chinese Commerce Ministry announced the move after the Washington expanded
its list of Chinese companies subject to export
controls on computer chip-making equipment, software and high-bandwidth memory
chips. Such chips are needed for advanced applications.
The ratcheting up of trade restrictions comes as President-elect Donald Trump
has been threatening to sharply raise tariffs on
imports from China and other countries, potentially intensifying simmering
tensions over trade and technology.
China's Foreign Ministry also issued a vehement reproof.
?China has lodged stern protests with the U.S. for its update of the
semiconductor export control measures, sanctions against
Chinese companies, and malicious suppression of China?s technological
progress," Lin Jian, a Chinese Foreign Ministry spokesperson,
said in a routine briefing Tuesday.
"I want to reiterate that China firmly opposes the U.S. overstretching the
concept of national security, abuse of export control
measures, and illegal unilateral sanctions and long-arm jurisdiction against
Chinese companies,? Lin said.
China said in July 2023 it would require exporters to apply for licenses to
send to the U.S. the strategically important materials
such as gallium and germanium. In August, the Chinese Commerce Ministry said it
would restrict exports of antimony, which is used in
a wide range of products from batteries to weapons, and impose tighter controls
on exports of graphite.
Such minerals are considered critical for national security. China is a major
producer of antimony, which is used in flame
retardants, batteries, night-vision goggles and nuclear weapon production,
according to a 2021 U.S. International Trade Commission
report.
The limits announced by Beijing on Tuesday also include exports of super-hard
materials, such as diamonds and other synthetic
materials that are not compressible and extremely dense. They are used in many
industrial areas such as cutting tools, disc brakes
and protective coatings. The licensing requirements that China announced in
August also covered smelting and separation technology
and machinery and other items related to such super-hard materials.
China is the biggest global source of gallium and germanium, which are produced
in small amounts but are needed to make computer
chips for mobile phones, cars and other products, as well as solar panels and
military technology.
After the U.S. side announced it was adding 140 companies to a so-called
?entity list? subject to strict export controls, China?s
Commerce Ministry protested and said it would act to protect China?s ?rights
and interests.? Nearly all of the companies affected by
Washington's latest trade restrictions are based in China, though some are
Chinese-owned businesses in Japan, South Korea and Singapore.
Both governments say their respective export controls are needed for national
security.
China's government has been frustrated by U.S. curbs on access to advanced
processor chips and other technology on security grounds
but had been cautious in retaliating, possibly to avoid disrupting China?s
fledgling developers of chips, artificial intelligence
and other technology.
Various Chinese industry associations issued statements protesting the U.S.
move to limit access to advanced chip-making technology.
The China Association of Automobile Manufacturers said it opposed using
national security as a grounds for export controls, ?abuse
of export control measures, and the malicious blockade and suppression of
China.?
?Such behavior seriously violates the laws of the market economy and the
principle of fair competition, undermines the international
economic and trade order, disrupts the stability of the global industrial
chain, and ultimately harms the interests of all
countries,? it said in a statement.
The China Semiconductor Industry Association issued a similar statement, adding
that such restrictions were disrupting supply chains
and inflating costs for American companies.
?U.S. chip products are no longer safe and reliable. China?s related industries
will have to be cautious in purchasing U.S. chips,?
it said.
The U.S. gets about half its supply of both gallium and germanium metals
directly from China, according to the U.S. Geological
Survey. China exported about 23 metric tons (25 tons) of gallium in 2022 and
produces about 600 metric tons (660 tons) of germanium
per year.
The U.S. has deposits of such minerals but has not been mining them, though
some projects underway are exploring ways to tap those
resources.
The export restrictions have had a mixed impact on prices for those critical
minerals, with the price of antimony more than doubling
this year to over $25,000 per ton. Prices for gallium, germanium and graphite
also have mostly risen.
--
Kim Holburn
IT Network & Security Consultant
+61 404072753
mailto:[email protected] aim://kimholburn
skype://kholburn - PGP Public Key on request
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End of Link Digest, Vol 385, Issue 3
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