Sparks on the China-USA line. Beijing restricts the export of key elements for many industries

toughen their course against the United States. A few days before Janet Yellen’s visit, the secretary of the treasury announced the decision to limit exports of gallium and germanium. These elements are commonly used in many industries – the first is used in the construction of radars, satellites, LEDs. The second one is used for the production of chips, satellite sensors or night vision devices. The elements are also used in the production of electric vehicles.

No wonder that the reaction to China’s decision was an increase in prices. According to analysts quoted by Reuters, the move was perfectly planned. It is intended to send a clear signal to the Biden administration, which had previously hit the Chinese chip industry hard. Other countries are also encouraged Japan and the Netherlands – to put pressure on China. Analysts see China’s latest move as one of the most important in the long-term battle with the US for the technology market. In May, they decided to ban some of their companies from purchasing from the American company Micron.

Former Chinese Trade Minister: Stop Pushing

Experts predict that the next chapter in the US-China trade war could be restrictions on exports of rare earth metals. China has already reached for such an argument – 12 years ago it limited supplies after the conflict with Japan. Wei Jianguo, China’s former vice minister of commerce, made it clear in a statement to China Daily that putting more pressure on China would trigger more action by the Chinese government.

If restrictions against China’s high-tech sector continue to escalate, countermeasures will also escalate

he said.

There is little sign, however, that the United States wants to stop. Over the past years, they have limited the export of advanced chips or equipment for the production of chips. The West does not want the Chinese military to use its technologies.

So far, gallium prices have risen – on Tuesday, the price per kilogram was 1,775 yuan, up 6 percent. week to week and 4 percent. Every year. Germanium is valued at 9,150 yuan per kilogram – there was no difference compared to the previous week. Compared to the previous month, the price even decreased (by 4%), but compared to the previous year it increased by 4.6%. Germanium ores are scarce, with China accounting for 60% of it. global market. Last year, they exported 47.7 tons of raw material. Compared to 2021, the increase was 10%. In the case of gallium, China has even more serious arguments, because it is responsible for 80 percent. its production. In 2022, they exported 94 tons of the substance, which means an increase of 25 percent. Every year.