3 weeks ago
9
China produces about all of the world’s gallium and at least 60 per cent of the world’s germanium, as per a report by the US Geological Survey. The imposition of these export controls highlights China’s significant influence over the global supply of numerous vital resources read more
 "China's export curbs of critical minerals needed for Chipmaking has US, allies worried")
Beijing implemented these controls last year, citing national security and interests, in response to US-led restrictions on advanced chip technology and manufacturing equipment. Image Credit: AFP
China’s recent export restrictions on essential semiconductor materials are causing significant disruptions in global supply chains and raising concerns among Western countries and their allies.
The restrictions, which target germanium and gallium — key materials used in semiconductor production and military optical components — have resulted in nearly a twofold increase in their prices in Europe over the past year, as per a report by the Financial Times.
Beijing implemented these controls last year, citing national security and interests, in response to US-led restrictions on advanced chip technology and manufacturing equipment.
China’s dominance in the supply of these critical minerals is substantial. China produces about all of the world’s gallium and at least 60 per cent of the world’s germanium, as per a report by the US Geological Survey. The imposition of these export controls highlights China’s significant influence over the global supply of numerous vital resources. Industry insiders have expressed growing concern about their reliance on Chinese supplies.
Although some large shipments of gallium continue, overall exports have dropped by approximately 50 per cent since the restrictions began, leading to fears of future shortages.
The impact of these controls is evident across various sectors. Jan Giese, senior manager of minor metals at Tradium, a Frankfurt-based trading firm, reported that the gallium and germanium acquired through China’s new export licensing program constitute only a fraction of previous purchases.
These export controls have introduced additional stress and complexity into already challenging markets. Both germanium and gallium are crucial for producing advanced microprocessors, fibre-optic products, and night-vision goggles, making any reduction in their availability potentially disruptive to these industries.
In addition to germanium and gallium, China has recently announced export restrictions on antimony, a mineral used in armour-piercing ammunition, night-vision goggles, and precision optics. This follows earlier controls on graphite and technologies related to rare earth extraction.
The price of germanium has surged by 52 per cent since early June, reaching $2,280 per kilogram in China. The restrictions necessitate that each shipment receive approval, a process that can take between 30 to 80 days and complicates long-term supply contracts.
Cory Combs, associate director at the Beijing-based consultancy Trivium China, noted that the main objective of Beijing’s export controls is to signal its ability to retaliate against US-led pressures on Chinese industries.
The controls are also seen as a way for China to secure its own supply of materials essential for clean energy technologies and industrial advancements. Traders have attributed the price surge in germanium to Chinese stockpiling, which some speculate represents a significant portion of the country’s annual production.
As China continues to leverage its control over these critical resources, it remains unclear if the export restrictions will be relaxed, especially given the current state of US-China relations and the global situation.
){kind=tracking}
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·