China has made an announcement regarding restrictions on exports of two crucial metals used in semiconductor, telecommunications, and electric-vehicle industries. This move comes in response to the US and its allies considering new limitations on chip exports to China.
The metals affected are gallium and germanium, along with their chemical compounds, which play a vital role in semiconductor production. Semiconductors are essential components in various products like computers, smartphones, and cars.
China holds the position of being the largest global producer of gallium and germanium, making these restrictions potentially impactful on the worldwide chip supply chain. Concerns arise from the US and its allies, suspecting China of exploiting its dominance in the chip industry to gain an advantage in the race for technological supremacy.
China’s announced restrictions are the latest move in an ongoing trade war centered around technology between the two countries. In response to US-imposed restrictions on Chinese tech companies like Huawei and ZTE. China has imposed its own restrictions on US tech companies.
These restrictions on chip exports are likely to heighten tensions between the US and China. The responses of both countries to each other’s actions are yet to be seen.
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