Tuesday saw the implementation of China’s export restrictions on two metals necessary for the production of semiconductors, one day after Beijing restricted the export of some drones.
In recent months, the Biden administration has intensified its efforts to limit Chinese companies access to the most cutting-edge chips.
China, which aspires to develop its own semiconductor design capabilities, claims that these actions are intended to uphold US dominance in the industry.
A decree from the Ministry of Commerce states that starting on Tuesday, Chinese enterprises wishing to export gallium or germanium will need to obtain a license.
Following the new regulations, they will also have to include specifics regarding their intended use and the final receiver.
According to a European Union assessment released this year, China produces 94% of the gallium used in integrated circuits, LEDs, and solar panels worldwide.
China produces 83 percent of the germanium used in infrared and fiber optics.
James Kennedy, an expert, told AFP that the export restrictions “send a clear signal that China holds all of the power in this dangerous game” and that they are “an unambiguous message” to the United States.
If the US decides to escalate further, China’s subsequent response will have repercussions, the statement reads.
He claimed that because of their need for gallium since germanium is “low” and the metals can be obtained elsewhere, China “aims to cause the least amount of damage” to the United States for the time being.
The actions are being taken as the Biden administration considers new restrictions on Chinese access to high-tech processors and on US investments abroad in China.
Export restrictions on drones
They also adhere to restrictions placed by Beijing on the export of particular drone subtypes.
Before they can be sold abroad as of September 1, exporters will need a license outlining their end use as well as other information.
According to a representative for the Chinese Ministry of Commerce, “any specific country or territory” was not the target of the action.
However, they did highlight the possibility of drones “being repurposed for military use” as justification for the limitations.
According to CNBC, China is a major exporter of drones, with the US-blacklisted DJI accounting for more than 70% of the global market share.
Both sides in the Ukraine conflict are said to have made substantial use of the company’s drones.
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While it “internally reassess (ed) compliance requirements,” DJI announced in April 2022 that it was temporarily suspending operations in both Russia and Ukraine.
American accusations that China is considering sending arms to support Russia’s campaign have been vehemently refuted by China.
According to a US intelligence report published last week, Beijing likely provided Moscow with dual-use military and civilian technology used in Ukraine, although it is “difficult to determine the extent to which (China) has assisted Russia in evading and circumventing sanctions and export controls.”
