Daily Management Review

US States It Opposes Chinese Export Restrictions On Metals And Will Consult With Allies


US States It Opposes Chinese Export Restrictions On Metals And Will Consult With Allies
A representative for the U.S. Commerce Department stated on Wednesday that Washington "firmly" opposes China's export restrictions on the metals gallium and germanium, which are used to create semiconductors and other devices. The spokesperson also added that Washington will confer with its partners and allies to find a solution.
China imposed export restrictions on gallium and germanium goods earlier this week. These goods are used in fibre optic cables and electric vehicles (EVs). The sudden announcement of controls beginning on August 1 has caused businesses to scramble to acquire supply and raised costs.
Germanium is utilised in plastics, high-speed computer circuits, night-vision equipment, satellite imagery sensors, and other military uses. Satellites, LEDs, radio transmission equipment, and radar all require gallium.
"These actions underscore the need to diversify supply chains. The United States will engage with our allies and partners to address this and to build resilience in critical supply chains," the Commerce Department spokesperson said in an emailed statement.
Economic observers interpreted China's action, which its commerce ministry claimed was taken to safeguard national security, as a response to Washington's stepped-up efforts to stifle China's technology advancements.
The news was made on the eve of the American holiday of Independence Day and right before Treasury Secretary Janet Yellen's trip to Beijing.
Concerns have also been voiced by the European Commission, and Robert Habeck, Germany's economy minister, declared that any expansion of regulations to include substances like lithium would be "problematic."
The problem is the most recent manifestation of rising U.S.-China tensions that have been going on for a while now over things like trade tariffs, the cause of the COVID-19 pandemic, cyber security, charges of espionage, and technological rivalry.