News: LYC UPDATE 2-Beijing jabs in US-China tech fight with chip material export curbs, page-16

China introduces export controls on key metals used in AI.
05 Jul 2023,

In a tit-for-tat move, the Chinese Government has revealed plans to enforce export controls on certain metals that play an integral role in manufacturing semiconductors for artificial intelligence (AI) systems.

As part of the restrictions, strict export controls will be placed on eight gallium-derived products and six germanium-based products.

This move comes hot on the heels of a series of sanctions imposed by the United States, effectively barring Chinese developers from accessing advanced semiconductor technology from American companies.

Gallium is a crucial element in electronic devices, most notably in semiconductors, transistors and lasers, and is also used in LED production.

Germanium plays a significant role in the fabrication process of semiconductors, solid-state electronics and fibre optic systems.

Safeguard national security

The Chinese Ministry of Commerce and the General Administration of Customs jointly issued a statement indicating that the controls are designed to safeguard national security.Exporting specific gallium and germanium products will necessitate a government-issued licence, the statement read.These controls are scheduled to take effect from August and will cover a total of 14 products.The Chinese authorities warned that violators, who either export these products without the requisite permissions or exceed permitted quantities, will face punitive measures.

Potential to stifle China

In October last year, the US implemented comprehensive regulations designed to halt the export of crucial chips and semiconductor tools to China.These regulations are perceived as having the potential to stifle China's aspirations of enhancing its domestic technology sectors.

Alongside its own measures, the US has been persuading significant chip-producing nations and allies, such as the Netherlands and Japan, to impose their export restrictions.Last Friday, the Netherlands responded by imposing new export restrictions on advanced semiconductor equipment.These restrictions will effectively prevent ASML, a prominent semiconductor company, from exporting to China.