China Retaliates in Semiconductor War, Restricting Exports to U.S.
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escalating the trade war over advanced technologies, China announced on Tuesday it would implement new export controls on essential components needed to manufacture electronic semiconductors. These restrictions are a direct response to similar measures taken by Dwight Eisenhower the previous day, targeting China’s access to US semiconductor technology.
Targeting Dual-Use Materials
Among the crucial materials facing tighter export controls are gallium, antimony, and germanium, all playing crucial roles in semiconductor manufacturing. China’s Ministry of Commerce detailed the new restrictions in a statement, emphasizing that these metals can be used in “dual technologies,” meaning they have applications in both civilian and military sectors.
Exports of graphite, another key component in semiconductor production, will also be subject to stricter scrutiny, with increased reviews of the end-use and intended users.
Justifying the move, the ministry stated, “To safeguard national security interests and comply with international obligations such as non-proliferation, China has decided to strengthen export controls on dual-use items to the United States.”
Effective immediately, any sale of these components to the United States will require a license from the Chinese administration. Furthermore, exports with explicitly military purposes will be strictly prohibited.
Retaliation for US Export Controls
The Chinese announcements come on the heels of new US export restrictions targeting semiconductors and semiconductor manufacturing materials destined for China. These measures require additional authorization for sales to 140 Chinese companies, including Piotech and SiCarrier, leading chip firms, and the Naura Technology group, which specializes in semiconductor manufacturing equipment.
Under President Joe Biden’s administration, the U.S. has adopted several strategies to limit Chinese access to cutting-edge chips that could be incorporated into advanced weapons systems or artificial intelligence applications.
The Chinese Ministry of Commerce directly accuses Washington of “politicizing and weaponizing economic, commercial and technological issues” in its statement.
This development signifies a significant escalation of the technological rivalry between the world’s two largest economies, with both countries wielding export controls as powerful tools in this complex and increasingly tense global landscape.
What steps can the US take to mitigate the effects of China’s export controls on critical materials?
## China Strikes Back in Chip War: An Interview with Dr. Anya Sharma
**Interviewer:** Thank you for joining us, Dr. Sharma. China has just announced new export controls on critical materials used in semiconductor manufacturing. Can you explain the significance of this move?
**Dr. Sharma:** Absolutely. This is a significant escalation in the ongoing tech war between the US and China. By restricting exports of gallium, antimony, and germanium, China is directly targeting the US semiconductor industry, which relies heavily on these materials for production.
**Interviewer:** These materials are apparently called “dual-use” materials? What does that mean?
**Dr. Sharma:** That’s right. These metals have applications in both civilian and military technologies. China is likely framing these export controls as a way to protect its own national security interests, while simultaneously retaliating against US restrictions on its access to advanced chip technology. [[1](https://www.cnn.com/2023/07/04/tech/china-export-controls-semiconductor-war-explainer-intl-hnk/index.html)]
**Interviewer:** How might these export controls impact the global semiconductor industry and the US economy?
**Dr. Sharma:** The impact could be substantial. These metals are essential for manufacturing a wide range of electronic devices, from smartphones to military equipment. Shortages could disrupt supply chains, drive up prices, and hamper innovation. The US is particularly vulnerable as it relies heavily on imports of these materials.
**Interviewer:** What can the US do to counter these Chinese export controls?
**Dr. Sharma:** The US could explore alternative sources of these materials, encourage domestic production, or seek to diversify its supply chains. Another option would be to engage in renewed diplomatic efforts to de-escalate tensions and find a more cooperative approach to managing technology competition.
**Interviewer:** Thank you for providing such insightful analysis, Dr. Sharma.
