Don't confront, talk and reason | Stable global industrial chain countries | Exports | Global
Last week, China announced that it will implement export controls on the raw materials of germanium and gallium, which are widely used in many products such as chips and solar panels. Given that export controls are an international practice, China's move should have been understandable, but it has been strongly opposed and deliberately distorted by the United States, claiming that China's export restrictions on germanium and gallium will disrupt the global supply chain.
A spokesperson for the US Department of Commerce stated that the US will work with its allies to "address this issue and enhance the resilience of critical supply chains.". This is clearly a typical case of thieves shouting to catch thieves, because no country can cause greater damage to the global supply chain than the United States. It should be noted that the United States is the one that arbitrarily implements export controls on advanced storage chips and chip manufacturing equipment against China. In addition, the United States is planning to restrict China's use of cloud services provided by the United States, requiring US cloud service providers such as Amazon and Microsoft to obtain US government permission before providing services to Chinese customers.
Although China is the largest producer of germanium and gallium, countries and regions such as Japan, South Korea, Europe, and the United States are also producing these raw materials. More importantly, the Chinese government implements export controls on germanium and gallium in accordance with the law only to maintain national security, while the United States regards this reasonable move as a weapon to attack China. It can be seen that it is not China that disrupts the global supply chain.
Despite much criticism, China has always withstood the pressure and committed itself to maintaining the security and stability of the global supply chain, especially against the background of the Russia-Ukraine conflict, global inflation and the continued high level of bulk commodities. For many years, China has been a "stabilizer" of the global supply chain, actively engaging in trade with other countries and utilizing its advantages as a manufacturing power to provide a large amount of raw materials and components to global manufacturers.
Starting from August 1st, China will implement "fair, reasonable, and non discriminatory" export controls on gallium and germanium related items. Some people are concerned about this because they have overlooked an important fact: the target scope of this export control is limited, and its impact on the global supply chain is limited. According to the new regulations, only eight types of gallium and six types of germanium require approval for export, and some Chinese manufacturers and their overseas customers have already begun the approval process.
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In today's world, countries are interdependent, and only by working together can we ensure the security and stability of global supply chains. However, policies such as hostile sanctions and trade protectionism are not beneficial to others and not beneficial to ourselves.
This article is translated from the July 12th editorial of China Daily
Original Crucial stabilizer of global supply chains
Production: Editorial Office of China Daily
Compiled by Cao Jing [Responsibility]
![Don't confront, talk and reason | Stable global industrial chain countries | Exports | Global](https://a5qu.com/upload/images/0488aca73220885b2084fe54d5b0a881.jpg)