China curbs exports of key chipmaking components to US

BEIJING: In a tit for tat move Beijing Tuesday said it would restrict exports to the United States of some key components in making semiconductors, after Washington announced curbs targeting China’s ability to make advanced chips.

Among the materials banned from export are metals gallium, antimony and germanium, Beijing’s commerce ministry said in a statement that cited “national security” concerns.

Exports of graphite, another key component, will also be subject to “stricter reviews of end-users and end-uses”, the ministry said.

“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,” Beijing said.

“Any organisation or individual in any country or region violating the relevant regulations will be held accountable according to the law,” it added.

Washington on Monday announced restrictions on sales to 140 companies, including Chinese chip firms Piotech and SiCarrier, without additional permission.

They also impact Naura Technology Group, which makes chip production equipment, according to the US Commerce Department.

The move expands Washington’s efforts to curb exports of state-of-the-art chips to China, which can be used in advanced weapons systems and artificial intelligence.

The new US rules also include controls on two dozen types of chip-making equipment and three kinds of software tools for developing or producing semiconductors.

Beijing swiftly vowed to defend its interests, saying the United States “abuses export control measures” and has “hindered normal economic and trade exchanges”.

‘Weaponised’ trade

China on Tuesday said Washington had “politicised and weaponised economic, trade and technological issues” as it unveiled its own export curbs.

The moves also restrict the exports of “dual-use items to United States military users or for military purposes”, Beijing said.

China accounts for 94 percent of the world’s production of gallium — used in integrated circuits, LEDs and photovoltaic panels — according to a report by the European Union published this year.

For germanium, essential for fibre optics and infrared, China makes up 83 percent of production.

Beijing last year had already tightened restrictions on exporters of the metals, requiring them to provide information on the final recipient and give details about their end use.

But the curbs unveiled Tuesday now ban them outright.

It had also previously restricted curbs on exports of certain types of graphite –also key to making batteries for electric vehicles.

“The move is clearly a retaliatory strike at the US,” Chong Ja Ian, an associate professor of political science at the National University of Singapore, told AFP.

“Should these curbs affect trade for third parties, this can create some trade and supply chain disruption—as well as associated inflationary pressures,” he said.