China Retaliates Against US Chip Sanctions

China is retaliating against the latest chip sanctions by the US, banning exports of rare minerals to the US that are vital to semiconductor production.

The US has been working for years to block China’s access to advanced chip technology, using its export restrictions to prevent US and international companies that rely on US technology from exporting the latest tech to China. While the sanctions originally targeted a limited number of companies, such as Huawei and ZTE, the US Commerce Department has expanded that list to include an additional 140 companies.

In response, according to AP News, China has banned exports of antimony, gallium, germanium, and other materials used in various high-tech and military applications. The country is the world’s main source of gallium and germanium. The two materials are used in semiconductors for the automotive and mobile industries. Antimony is a key component in batteries, as well night-vision products, nuclear weapons, and flame retardants. As such, a ban on exports to the US could have a significant impact on the US tech industry.

China’s Foreign Ministry took the opportunity to condemn the latest action by the US.

“China has lodged stern protests with the U.S. for its update of the semiconductor export control measures, sanctions against Chinese companies, and malicious suppression of China’s technological progress,” Lin Jian, Chinese Foreign Ministry spokesperson, said Tuesday.

“I want to reiterate that China firmly opposes the U.S. overstretching the concept of national security, abuse of export control measures, and illegal unilateral sanctions and long-arm jurisdiction against Chinese companies,” Lin said.

China is already taking measures to secure its ability to make advanced semiconductors, making a concerted effort to recruit semiconductor engineers from the West. The move is already drawing attention from intelligence agencies..

The situation is not likely to improve in the coming months, with the incoming Trump administration promising steep tariffs on goods from China, which will likely lead to additional retaliatory export bans.

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