China just fought back in the semiconductor exports war. Here’s what you need to know

• Published in: MIT Technology Review.com
• Main Author: Yang, Zeyi
• Format: Newspaper Article
• Language: English
• Published: Cambridge Technology Review, Inc 10.07.2023
• Subjects: Chemical elements; Communications equipment; Defense contracts; Environmental protection; Export controls; Exports; Fiber optics; Gallium; Germanium; International trade; Licensing; Licensing (technology); Optics; Photovoltaic cells; Purchase orders; Radio communications; Raw materials; Semiconductors; Solar cells; Solar energy; Solar panels; Strategic materials; Supply chains; Technology policy; Beijing China; United States > US; China; Japan; Russia

On July 3, the Chinese Ministry of Commerce announced that the export of gallium and germanium, two elements used in producing chips, solar panels, and fiber optics, will soon be subject to a license system for national security reasons. Gallium is used in the manufacture of radio communication equipment and LED displays, while germanium is widely used in fiber optics, infrared optics, and solar cells. “Beijing was … sending a signal before the Yellen visit that China will play the game of controlling exports in key sectors of concern to the US government,” says Paul Triolo, a senior vice president for China and technology policy lead at the consultancy Albright Stonebridge Group. The Chinese government may be seizing stronger control of the supply chain for now, but the added uncertainty of the licensing regime will cause foreign importers of gallium and germanium to look elsewhere for a more reliable supply.