China strikes back with US export restrictions in escalating semiconductor trade war

Beijing, China - China said Tuesday it would restrict exports to the US of some key semiconductor components, in retaliation to the Biden administration's newly announced curbs targeting Beijing's ability to make advanced chips.

China retaliated to new US trade restrictions by introducing curbs on exports of materials key to the production of semiconductors.
China retaliated to new US trade restrictions by introducing curbs on exports of materials key to the production of semiconductors.  © I-Hwa CHENG / AFP

Among the materials banned from export are the metals gallium, antimony, and germanium, Beijing's commerce ministry said in a statement.

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

"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.

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"Any organization or individual in any country or region violating the relevant regulations will be held accountable according to the law."

In its own escalation, the US on Monday announced restrictions on sales, without additional permission, to 140 companies including Chinese chip firms Piotech and SiCarrier.

They also impact Naura Technology Group, which makes chip production equipment, and include controls on two dozen types of chip-making equipment and three kinds of software tools for developing or producing semiconductors.

The move expands Washington's efforts to cripple China's ability to make state-of-the-art chips.

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

It claimed Washington had "politicized and weaponized economic, trade and technological issues."

China's dominance in production of key materials

The US and China have exchanged tit-for-tat trade restrictions as Washington aims to curb Beijing's ability to play a dominant role in semiconductor production.
The US and China have exchanged tit-for-tat trade restrictions as Washington aims to curb Beijing's ability to play a dominant role in semiconductor production.  © REUTERS

China accounts for 94% 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 fiber optics and infrared, China makes up 83% 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 measures 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.

Cover photo: I-Hwa CHENG / AFP

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