China has banned the export of several minerals used in the manufacturing of advanced computer chips to the United States.
Germanium, gallium and antimony are all minerals considered critical to the production of semiconductors due to their high conductivity — and China is currently the largest producer of these minerals.
The country has also tightened its export controls on graphite, which is used in batteries for electric vehicles and for grid-storage batteries.
These restrictions, in addition to restrictions on other materials, come as a retaliation against the United States, which recently tightened its own export controls on semiconductors and other materials to China.
Commerce Secretary Gina Raimondo said these new restrictions are intended to prevent China from accessing and producing cutting-edge technology that could “pose a risk to national security.”
The minerals, though, are critical to semiconductor manufacturing. And while there are alternatives like recycling devices and reusing their precious minerals, China still holds dominance.
Tension between the U.S. and China have risen in recent years, due in part to the Biden administration imposing restrictions on U.S. companies’ technology being sold to Chinese companies, citing national security concerns over the country’s ability to develop and weaponize advanced U.S. technologies.
Both the U.S. and China have accused each other of “weaponizing trade” as tension continues to grow.
Exactly how this will affect semiconductor manufacturing companies with facilities in Arizona — like Intel and TSMC — remains unclear. President-elect Trump has promised to raise tariffs on Chinese imports sharply when he takes office in January, which may bring tensions even higher.
