As said present by Nikkei Asia, China reported on Monday 3 July that they would impose fresh export restrictions on 2 key materials for the production of semiconductors and another electronic components, in an escalating trade conflict with the US.
As of 1 August this year, exporters will not be allowed to send galu and germanu, as well as related chemical compounds from China without an appropriate licence issued by the Ministry of Trade and the General Customs Administration.
Gal is utilized in the production of semiconductors, is essential for electronic devices as it helps reduce power losses. Galium nitrides are utilized in lasers and another applications, and this material is expected to be increasingly utilized in transistor power systems in electrical vehicles.
Japanese companies Nidec and Renesas Electronics consider utilizing galium nitride substrates for an EV component that they jointly develop.
According to U.S. Geological survey China produces 98% of the world's gala.
Beijing limits the supply of galas based on national export control law, implemented at the end of 2020. It allows the authorities to trust on considerations bNational securityto ban the dispatch of controlled products to certain abroad companies.
The Chinese authorities utilized this right to impose export restrictions on encryption and semiconductor technology utilized to prevent data leakage.
Galium restrictions are a consequence of export restrictions imposed on China by the US and another countries. According to The Wall Street Journal, Washington is considering tightening trade restrictions on semiconductors exported from China. The proposed rules would apply to chips utilized in artificial intelligence.
Producers who are incapable to get gallium or related products from China may encounter limited alternatives, which is likely to increase metallic prices and hinder the adoption of any of the most modern technologies – inform the Agency.
In another words – there is no gallium and germanium, there is no large part of semiconductors.
A akin situation can happen wherever uncommon earth metals are used. The relation between China and the remainder of the planet at all stage, from the acquisition of uncommon earth ore to their conversion into circumstantial products (for example magnetic turbines to wind turbines), is illustrated in the table below.
Next Thursday, US Secretary Janet Yellen arrives in Beijing with a four-day visit. He is to meet with the most crucial representatives of the Chinese authorities there to “ jointly face global challenges”.
The U.S. Treasury Department reported that Janet Yellen will discuss “the importance for our countries – as the 2 largest economies in the planet – liable governance of our relations, direct communication in areas of concern and cooperation to address global challenges.”
And all this in 2 weeks after president Joe Biden called president Xi JinPing a dictator.
Leszek B. Glass
Email: [email protected]
Sources: Nikkei Asia, SCMP
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