In response to chip export restrictions from the US and Europe, China has retaliated by imposing export controls on two essential semiconductor manufacturing elements, gallium and germanium, adding another dimension to the ongoing global battle over chipmaking technology control.
- China has announced export controls on two rare elements, gallium and germanium, which are essential for semiconductor manufacturing. This move is in response to the US and Europe restricting chip exports to China.
- Starting August 1, exporters of these raw materials will require special permission from the state to ship them out of the country, according to China's Ministry of Commerce.
- Both gallium and germanium are used in several products, including computer chips and solar panels, and are listed as critical raw materials by the European Union. China is the world's largest gallium producer and a significant producer and exporter of germanium.
- The Dutch government recently imposed new restrictions on exports of some semiconductor equipment, provoking a harsh reaction from Beijing. Consequently, ASML, Europe's largest tech firm, will need to apply for export licenses for products used to manufacture microchips.
- Japan, the US, and Italy have also taken measures to restrict Chinese companies' access to chips and chipmaking equipment. This has been seen as an attempt to limit the Chinese government's access to sensitive chip technology.
- The new policy was interpreted as retaliation by a state-owned newspaper, China Daily, which suggested that critics should question why the US and the Netherlands have taken similar actions against China.
- China's announcement comes just before US Treasury Secretary Janet Yellen's visit to Beijing from July 6 to July 9, where she will meet with senior Communist Party officials.
Oh, but look at those petty downvotes you fished.
A similar thing was happening with Americans and Spaniards/Germans extracting oil from Mexico, just so the Mexicans bought it back from them, despite Mexico having the technology and infrastructure to do it all themselves.
After all the military grade weapons that the Obama administration sponsored to the Narcos back in 2012, and Trump’s racism campaign, the current Mexican president took back the oil extraction and refinery industries and and nationalized them, which got a lot of people mad, especially the American press, like The NY Times which constantly publishes articles depicting Mexico as a dictatorship paradise on its way to become the next USSR.
And now look how the Mexican "super" peso is doing…