Tech has become the latest battleground between the United States and China. A day after the US reinforced restrictions on exporting chips and related manufacturing equipment to China, Beijing has struck back by banning the export of key minerals to the US.
As reported by Reuters, China's commerce ministry issued a new directive on Tuesday, stating that "the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted." The new order takes effect immediately and also requires exporters to have more supervision over the end-usage of graphite exported to the US.
The commerce ministry has cited national security concerns over imposing the ban on the US. Minerals whose export to the US is prohibited have military and civilian applications.
Meanwhile, minerals like antimony are also used in semiconductor manufacturing, and China happens to be one of its biggest owners and exporters. Last year, China accounted for 48 percent of globally mined antimony. The material is also used in manufacturing nuclear weapons, ammunition, and infrared missiles.
China's strategic response to the White House chip ban began last year with the curbing of key mineral sales to the US. The recent directive from the Commerce Ministry clearly indicates that China is not without its own retaliatory measures.
The tech tensions between the United States and China are expected to escalate further as Donald Trump officially begins his term as POTUS. The new US president has already threatened to impose a 60 percent tax on imported goods from China. His previous term (2017-2021) also saw the designation of TikTok as a threat to US national security.
However, China is not passively responding to the US actions. In addition to the ban on mineral exports, Chinese firms have been stockpiling US-made chips, a proactive move that demonstrates their readiness to mitigate the impact of any ban.
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