2023-08-03 00:54:01
The decision to control gallium and germanium exports, announced a few days ago by China, became effective on August 1, which is why national exporters of both metals must obtain a license to sell them abroad.
The measure responds to the multiple restrictions that the United States has imposed on Chinese imports of essential semiconductors for the development of artificial intelligence, under the assumption that Beijing would thereby achieve an alleged military superiority. The Netherlands and Japan have joined some of these measures. But it is estimated that the alleged reasons of “national security” raised by the Biden administration seek, in truth, to stop Chinese progress in the matter.
In turn, the gallium and germanium exported by China, and now under control, are needed for the manufacture of computer chips, mobile phones, automobiles and other products, so US semiconductor companies could find themselves in trouble.
The Asian nation is considered the largest source and main producer of gallium and germanium worldwide. According to insiders, the United States gets about half its supply of both metals directly from China.
Last year, Beijing exported about 23 metric tons (25 tons) of gallium, and has an estimated annual output of about 600 metric tons (660 tons) of germanium.
So the Asian giant has given its answer.
The dispute on the matter between Washington and Beijing dates back to the tenure of Donald Trump, when the former US president began the persecution against Chinese technology after false accusations of “espionage” made against some 60 companies in the Asian country, including the powerful Huawei, and that unleashed an international boycott against it.
Since then, each restriction by the United States has been responded to with another countermeasure by Beijing, which is looking for alternatives to avoid stopping its development, and has denounced that Washington is politicizing the matter.
Evidence that would demonstrate the real interests of the United States in contemplating China as a competitor in all spheres that must be stopped is the concern that has aroused among the United States authorities —and also among the European ones— the impulse that Beijing is giving to the production of semiconductors of previous generations, given the impossibility of accessing the latest ones.
The initiative also shows China’s search for variants in the face of each US restriction.
According to the El Financiero portal, Beijing has responded by investing billions in old chip factories, which have not been banned.
That has raised new fears about the potential influence of China and would have triggered talks to further control the Asian nation, the note revealed.
US Commerce Secretary Gina Raimondo alluded to the problem during a panel discussion last week at the American Enterprise Institute during which she touched on China’s production of chips using older technologies. «(…)« That is a problem that we must think about and work with our allies to overcome it », she said, in what can be interpreted as a warning.
While there is no timetable for taking action and information is still being collected, all options are on the table, according to an administration official, El Financiero reported. A spokeswoman for the US National Security Council declined to comment, while a spokesperson for the European Commission had no immediate comment.
Senior officials in the European Union and the US are concerned about China’s push to dominate this market for “both economic and security” reasons, the people said. They worry that Chinese companies could dump their chips into global markets in the future, which would bankrupt foreign rivals, such as in the solar power industry, they said.
“USA. and their partners should be on guard to mitigate non-market behavior by China’s emerging semiconductor companies,” researchers Robert Daly and Matthew Turpin wrote in a recent paper from Stanford University’s Hoover Institution think tank. “Over time, it could create new US dependencies or China-based supply chain partners that do not currently exist, affecting US strategic autonomy.”
With information from RT and El Financiero
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