China bans exports of key microchip elements to US as trade tensions escalate

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China bans exports of key microchip elements to US as trade tensions escalate
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Semiconductor restrictions on China announced by Washington a day earlier prompt retaliation involving critical minerals including gallium and germanium

Workers install chips, resistors, and other components on a circuit board in a workshop in Fuyang, Anhui province, China, on 30 November 2024.Workers install chips, resistors, and other components on a circuit board in a workshop in Fuyang, Anhui province, China, on 30 November 2024.

“To safeguard national security interests and fulfil international obligations such as non-proliferation, China has decided to strengthen export controls on relevant dual-use items to the United States,” the ministry said. On Monday, Washington announced restrictions on sales to 140 companies including Chinese chip firms Piotech and SiCarrier, expanding efforts to curb exports of state-of-the-art chips to China that could be used in advanced weapons systems and artificial intelligence.

The Chinese move also restricts the export of “dual-use items to United States military users or for military purposes”, Beijing said. These “back and forth curbs” could create supply chain disruption, as well as inflationary pressures, should they affect trade for third parties, said Chong Ja Ian, an associate professor of political science from the National University of Singapore.

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