Backfire! US executives are concerned about the "unintended consequences" of technology containment plans in China | US | Technology

Release time:Apr 14, 2024 13:01 PM

Starting from August 1st, China officially implemented export controls on two strategic mineral resources. According to US media reports, due to the dual-use properties of these two metals, the US Department of Defense has had to take "unconventional measures" to respond.

China's export controls have been officially implemented

Response to "Rare Measures" in the United States

China officially implements export controls on two types of metal related items

Backfire! US executives are concerned about the "unintended consequences" of technology containment plans in China | US | Technology

According to previous announcements issued by the Ministry of Commerce and the General Administration of Customs of China, China's export controls on gallium and germanium related items will be officially implemented from August 1st.

Host of Singapore Asia News Channel

Do you have a mobile phone? Your phone may contain gallium and germanium. From television to cars, from solar panels to night vision goggles, the applications of gallium and germanium are ubiquitous. On the periodic table, these two soft silver metals are located between zinc and arsenic.

Gallium and germanium have extensive military applications and dual-use properties

Gallium and germanium have a wide range of applications in high-tech industries. Gallium has high conductivity, moderate thermal conductivity, and low liquid toxicity. Downstream products mainly include semiconductor materials, semiconductor light-emitting devices, and transistors; Gallium nitride is one of the most representative third-generation semiconductor materials.

Germanium also has important applications in fields such as semiconductors, aerospace, and solar cells. Experts say that from the downstream application fields of gallium and germanium, related items not only serve economic and social development, but also have a wide range of military uses and typical dual-use properties.

US media: The Pentagon will use the Defense Production Act to recycle gallium

According to Bloomberg, due to the lack of a strategic reserve system for gallium, the US Department of Defense plans to use the Defense Production Act to sign a contract with US or Canadian companies to recover gallium resources before the end of this year. The 1950 Defense Production Act can authorize the US administrative department to require private companies to prioritize the production of products related to national security.

US Think Tank: Gallium Used for US Navy Shipborne Radar and Ground Air Defense Radar

The Center for Strategic and International Studies, a Washington think tank, pointed out in a report released in July that gallium is widely used in active radar systems of the US military, including the AN/SPY-6 radar produced by Raytheon. This type of radar is mainly carried by the Arleigh Burke class Aegis destroyer and can perform both air defense and anti missile missions, detecting incoming cruise missiles, aircraft, and ballistic missiles. In March 2022, the US Navy signed a $650 million contract with Raytheon Corporation to install this type of radar on all newly built surface vessels, including the Ford class aircraft carrier.

Gallium is also used in the AN/TPS-80 radar equipped by the US ground forces - a mobile multitasking radar with real-time, 360 ° situational awareness capabilities that can detect and track multiple targets including manned aircraft, drones, cruise missiles, and shells. The new generation AN/TPS-80 radar uses gallium nitride antennas, which can enable the radar transmitter to achieve greater transmission power and reduce costs with less electricity usage.

US Department of Defense: Recycling is Faster than Mining and Processing

US media emphasized that the US military has never previously allocated funds for metal recycling under the Defense Production Act.

According to reports, gallium can be obtained from waste generated during semiconductor wafer manufacturing and some second-hand products. A Pentagon spokesperson stated that recycling is a faster way to obtain gallium compared to mining and processing.

Australian resource analyst David Lennox

At present, there are no other alternative options outside of China. We have seen some plans to dismantle military vehicles and weapons, and recover metals from them, especially for the United States, which has a large number of military vehicles and electronic devices, and recycling may be their main source of acquisition.

Chinese Ministry of Commerce: The purpose of implementing export controls is to maintain national security

The Chinese Ministry of Commerce previously stated that the Chinese government implements export controls on gallium and germanium related items in accordance with the law to ensure their lawful use, with the aim of maintaining national security and better fulfilling international obligations. Experts also point out that rare metals such as gallium and germanium are not only considered as strategic reserve minerals by China, but have also been listed in strategic or key mineral catalogs by developed economies such as the European Union, the United States, and Japan.

The restrictive measures against China are gradually escalating

US executives are concerned about "unintended consequences"

US media: Biden plans to sign investment restrictions on China in mid August

According to US media reports, US President Biden plans to sign an investment restriction order against China in mid August. Sources have revealed that the restrictions will focus on the fields of semiconductors, artificial intelligence, and quantum computing, and existing investment projects will not be affected. After the issuance of the restriction order, opinions from relevant parties will be solicited, and the official implementation will not take effect until 2024.

Barron Weekly pointed out that in the past, the United States provided technology and products to China through strict export controls, but there was almost no regulation on the flow of funds to China.

Bloomberg TV host

If concerns about "national security" are really so important, why did the Biden administration take so long when Sullivan proposed to restrict investment in China two years ago?

US Treasury Secretary Yellen

We are indeed very cautious in considering setting restrictions on outward investment, which will complement existing export control policies. We hope to ensure that once this policy is introduced, it will be implemented in the right way, and we have been improving the relevant details.

US Secretary of Commerce: Attention Needed to China's Large Scale Investment in Mature Process Chips

So far, the restrictions imposed by the United States on China's chip industry have mainly focused on advanced processes of 14 nanometers and below, which has forced Chinese companies to shift towards mature processes with fewer restrictions. US Commerce Secretary Raymond recently publicly stated that China's significant investment in mature process chips needs to be taken seriously by the US and its allies.

US Secretary of Commerce Raymond

This issue requires us to seriously consider and cooperate with allies and make advance arrangements.

Although mature process chips are not as fast and energy-efficient as advanced processes, they are widely used in automotive and electronic products, as well as weapons and equipment such as missiles and radars. The International Semiconductor Equipment and Materials Organization predicts that from 2022 to 2026, the total number of new 8 inch and 12 inch wafer factories in Chinese Mainland will reach 26, far more than any other countries and regions; By 2026, the 12 inch wafer production capacity of Chinese Mainland will surpass that of South Korea, ranking first in the world.

"De Sinicization" of strategic industrial supply chain? American media: Difficult!

US Treasury Secretary Visits Vietnamese Electric Vehicle Companies to Promote "Friendly Outsourcing"

In August 2022, the Chip and Science Act and the Inflation Reduction Act were successively passed in the US Congress and signed into effect by Biden. These two laws aimed at promoting the return of production capacity in strategic industries such as semiconductors and new energy constitute the core content of the so-called "Biden economics".

According to the website of The Politburo, several high-ranking officials from the Biden administration, including the President, Vice President, Secretary of Commerce, Secretary of Energy, and Secretary of Transportation, will travel to various parts of the United States in August to promote the role of these two laws in enhancing the country's economic and technological competitiveness.

In conjunction with a series of policies to stimulate industrial backflow, the US government has also vigorously promoted the concept of "friendly outsourcing" since 2022, attempting to disperse production capacity to so-called "friendly countries". On July 20th, during his visit to Vietnam, US Treasury Secretary Yellen specifically visited a local electric vehicle startup.

US Treasury Secretary Yellen

We are actively working to make the supply chain more resilient, which does not mean that the United States is self-sufficient in all aspects, nor does it mean interrupting our trade with China. But we do cooperate with more countries, and the US sees Vietnam as a great partner.

Chinese battery material companies increasing investment in South Korea

However, in the process of promoting the concept of "friendly outsourcing", there has also been a phenomenon that surprised the US government: Reuters reported on July 31 that South Korea is accepting more investment from Chinese battery material companies; Since entering 2023, Chinese companies have announced investments of over 4.4 billion US dollars in the field of battery materials in South Korea, and there are also battery companies under groups such as LG and SK that cooperate with China.

According to the Inflation Reduction Act, American consumers who purchase electric vehicles can enjoy a maximum tax subsidy of $7500, provided that the car assembly process is completed in North America. At the same time, a certain proportion of automotive battery components and raw materials must also be produced in the United States or countries with which the United States has signed free trade agreements.

Bloomberg reporter

The reason they do this is that South Korea is one of the few Asian countries to have signed a free trade agreement with the United States.

US media: It's not easy to exclude China from the electric vehicle supply chain

American media believe that although the Biden administration is attempting to exclude China from the electric vehicle industry chain through "anti China clauses," the fact that Chinese companies can "bypass" South Korea highlights China's dominant position in this field. Data shows that, except for refined nickel sulfate, China's share in all other links of the electric vehicle supply chain exceeds 60%.

Bloomberg reporter

The key is that China currently occupies a dominant position in the supply chain of electric vehicles at all levels, not only in batteries, but also in mining, smelting, and the processing of chemicals required for batteries. Therefore, it is not easy to exclude China from the electric vehicle supply chain. If the United States really wants to do so, they may have to shrink their ambition for green transformation.

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According to Hong Kong's Wen Wei Po, a bloody knife stabbing case occurred at Hollywood Square in Diamond Hill last Friday. The police arrested a 39 year old man on suspicion of stabbing two young women, one of whom was stabbed over 30 times. The suspect appeared in the Kwun Tong Magistrates Court this morning. The police at the Kwun Tong Magistrate's Court temporarily charged the suspect with two counts of murder last Sunday. The suspect appeared in court this morning at the Kwun Tong Magistrate's Court. Acting Chief Magistrate Zheng Jihang, after listening to the opinions of both the prosecution and defense, decided to postpone the hearing for two weeks until 9:30 am on June 19th, waiting for two psychiatric expert reports to be obtained. The defense did not object. Zheng Jihang approved the application, and the defendant needs to be temporarily detained at Xiaolan Mental Hospital. When the suspect appeared in court, he wore black framed glasses, a light gray shirt, and camouflage green shorts, and was able to answer the judge's questions normally. accordingly

Currently, the highly anticipated summer harvest work in Henan has shifted its focus to the northern region of Henan. According to the Henan Daily client, on June 4th, Lou Yangsheng, Secretary of the Henan Provincial Party Committee, presided over a special video scheduling meeting on the "Three Summers" work in the province, listened to the situation report, analyzed and judged the situation, and arranged and deployed the next steps of work. Governor Wang Kai made specific arrangements. On the evening of May 31, 2023, in Xiafutou Village, Xuliang Town, Boai County, Jiaozuo, Henan Province, villagers braved light rain in the wheat fields to harvest wheat. Visual China Map Lou Yangsheng pointed out that the current summer harvest battle in the province has entered the decisive stage. Doing a good job in summer harvest in northern Henan Province is related to the summer grain yield and seed safety. We should focus on seizing opportunities and make every effort to organize the wheat harvesting work in the northern Henan region, minimize losses, and protect the interests of farmers to the greatest extent possible. Accurate forecasting is essential

Xinhua All Media+| Welcome home! What innovative technologies are protecting the return journey of Shenzhou 15? Spaceship | Shenzhou | Technology

On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Astronauts Fei Junlong, Deng Qingming, and Zhang Lu all safely and smoothly exited the spacecraft, and the Shenzhou-15 manned flight mission was a complete success. What innovative technologies are there to safeguard the return journey of Shenzhou 15 in this mission? On June 4th, the return capsule of the Shenzhou-15 manned spacecraft successfully landed at the Dongfeng landing site. Xinhua News Agency reporter Lian Zhen photographed that "the sky and the ground" ensure the high-precision return of spacecraft. For the Shenzhou series spacecraft, the return and re-entry GNC technology is directly related to the life safety of astronauts. Taking the success of this return mission as a symbol, China has comprehensively upgraded its GNC system since the Shenzhou-12 manned spacecraft, which features autonomous rapid rendezvous and docking, autonomous adaptive prediction and re-entry return guidance, and has completed a comprehensive update and replacement

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At noon today, a Chinese naval fleet consisting of Zhanjiang and Xuchang ships arrived at the assembly area of the "Comodo-2023" multinational maritime joint exercise. It is understood that the assembly anchorage for this exercise is 3 nautical miles long and 1.5 nautical miles wide, capable of anchoring up to 50 ships. Naval vessels from various countries participating in the exercise will also arrive at the anchorage today to complete the assembly of the "Komodo 2023" multinational maritime joint exercise, which is held every two years by the Indonesian Navy. This year is already the fourth edition of the exercise. The exercise will be held from June 5th to 8th in the city of Jakarta, South Sulawesi Province, Indonesia, including the port and sea phases. In the coming days, participating navies from various countries will participate in ship reading style search and rescue exercises, maritime interception and damage management exercises, aerial exercises, and other course objectives exercises

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On the evening of June 1st, the US Senate passed a bill on the federal government's debt ceiling and budget, and the flame of the US debt bomb was temporarily extinguished at the last moment. The two parties in the United States have staged an extreme tug of war over the US debt bomb. Some experts believe that the US debt crisis is the result of the reckless politics promoted by the US dollar hegemony, and the underlying cause of this crisis is the highly polarized political system of the US. Since the end of World War II, the US Congress has adjusted the debt ceiling more than a hundred times. The recurring debt crisis will not only have a catastrophic impact on the US economy and people's livelihoods, but also continuously erode the value of US dollar assets such as government credit and US bonds, bringing significant and far-reaching impacts to the global economic landscape. 【

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