Overseas Experts Evaluate Important Raw Materials for Export Control: Replacing China is a "Fantasy" for the United States | Countries | Exports
On July 5th, China Daily reported that the Ministry of Commerce and the General Administration of Customs of China announced on July 3rd that in order to maintain national security and interests, export controls on gallium and germanium related items will be implemented from August 1st, 2023. It is reported that gallium, germanium, and other important raw materials for chip manufacturing.
The Wall Street Journal reported that both gallium and germanium appear in 50 minerals deemed "critical" by the National Geological Survey, indicating that they are crucial to the US economy or national security.
Although the trading volume of gallium and germanium is not very large, these two metals have important uses for specific industries, especially the production of some semiconductor chips. These semiconductors are often designed and used in the United States even if they are manufactured in Taiwan and South Korea.
"This measure will have a direct ripple effect on the semiconductor industry, especially in the field of high-performance chips," said Alastair Neil, a board member of the Critical Mineral Institute with nearly 30 years of research experience in the Chinese metal industry.
Bloomberg reported that although rare metal trade is difficult to track, China is definitely the largest source country for these two metals - a study by the European Union this year on key raw materials showed that China accounts for 94% of gallium supply and 83% of germanium supply.
Metal industry intelligence provider CRU Group stated that although alternative producers can be found for both metals, it will significantly increase costs and also affect product performance.
According to Reuters, Ben Wood, Chief Marketing Officer of CCS Insight, an industry analysis company, said, "There has been speculation for some time that China will respond to the escalating sanctions against China by the United States and other countries. China's export control of important raw materials for chips is a bold measure, and there is no doubt that raw materials play a crucial role in many industries."
Dai Bite, President of the China International Mining Association, emphasized that it is not surprising that China has responded to the US led high-tech restrictions on China. The production of these small metals in China accounts for approximately 90% of the global total production. China's countermeasures against the restrictions imposed by the United States are a basic strategy for international trade negotiations.
"Gallium and germanium are very important rare metals in the production process of technological products, and China is the main producer of most of these metals. Any idea that any country can replace China in the short or even medium term is a fantasy."
