China Hits Back at US Bans, Halts Export of Key Chip Materials

China fired back on Tuesday after the Biden Administration’s latest export bans on companies in its chip sector.

The Commerce Ministry in Beijing announced an immediate halt to exports of gallium, germanium, antimony and superhard materials to the US, elements used in the tech sector and for ammunition.

The ministry’s order, posted in a notice on Tuesday, came a day after Washington broadened its crackdown on China’s semiconductor industry – its third in three years – curbing exports to 140 companies, including chip equipment maker Naura Technology Group.

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The directive, which cites safeguarding national security and interests, also requires a stricter review of end-usage for graphite “dual-use items” shipped to the United States.

The curbs strengthen enforcement of existing limits on exports of the critical minerals that Beijing announced at the beginning of last year.

But they apply specifically to the United States, in the latest escalation of trade tensions between the world’s two largest economies in the run-up to President-elect Donald Trump taking office on January 20.

“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry said.

Experts warned in August that China’s tightening grip on exports of critical minerals needed for chipmaking could end up triggering a global shortage of semiconductors.

Beijing has, since last year, significantly cut its exports of gallium and germanium — two metals key to the production of high-speed computer chips.

China dominates the supply of both the metals, accounting for at least 60% of global germanium production and nearly 90% of the world’s gallium output.