Various Chinese companies are affected by the restriction of processing chips by the United States. Now, China is retaliating, by imposing export barriers on two key metal materials used in semiconductor production, namely gallium and germanium. Both of these materials are also used in the production of electric vehicles and also telecommunications.
China will impose this trade restriction starting August 1, 2023. Those involved in exporting these two types of metal need to obtain a license first before sending them out of China. At the same time, information such as the buyer and purpose of use of the metal must be disclosed to the authorities.
China today produces 94% of the world's gallium production, which is critical in high-tech industries. The production of metal materials in China is cheaper than other locations. This obstacle by China is expected to increase the cost of chips and so on.
Previously, there were rumors that the United States would extend trade barriers against China, including blocking chips for artificial intelligence, etc.
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NEWS & FACT