China Imposes Export Curbs on Metals Used in Computer Chips and Solar Cells

China has now placed export curbs on two important metals used in the production of computer chips and solar cells. The Commerce Ministry declared the restrictions on gallium and germanium are necessary to safeguard national security and will take effect on August 1st. It is the latest move in the ongoing trade dispute between China and the United States.

The Biden administration is trying to revive deteriorating relations between the two countries, which have been strained over disputes regarding technology, human rights, military buildup, and other issues. Gallium and germanium are essential to the production of computer chips and solar panels, and are also used in military technology. China is the world’s leading exporter of these metals. The US Geological Survey states that the US gets almost half of its supply of gallium and germanium directly from China.

In response to US restrictions on access to advanced processor chips and other technology, China has taken its own measures. In May, it banned the use of US-based Micron Inc.’s products in certain computers and network equipment. Additionally, it limited exports of rare earths, minerals used in electric cars, mobile phones, and lasers. Both countries are attempting to resolve the escalating tensions, with US Treasury Secretary Janet Yellen visiting Beijing this week. It remains to be seen if the export curbs on gallium and germanium will be relaxed or further tightened.