[Discussion] China Hits Back at US Sanctions with Chip Material Export Ban

[Uncrowned Guard]

China Responds to US Sanctions With Export Restrictions on Chip-Making Materials

China has instituted stringent rules restricting the sale of minerals integral to chip production to the United States. The decision follows a subsequent day after the U.S. announced penalties that in turn, complicate the manufacturing of sophisticated semiconductors for Chinese corporations.

Steps Towards National Security

On a recent Tuesday, the Chinese Ministry of Commerce stated it would discontinue the trade of key minerals like gallium, germanium, and antimony, which potentially have military usage, to the United States. This decision is driven by China's aim to protect its national security. Furthermore, the Chinese government will be diligently examining any graphite exports moving forward.

New US Rules to Cripple China's Chip and AI Manufacturing Capabilities

The previous day, the US Commerce Department released new regulations. These regulations could further hinder China’s ability to manufacture semiconductors critical for data and weapon systems. The restrictions focus on the machines and software crucial to the production of semiconductors, alongside high-bandwidth memory chips. Furthermore, the ban extends to 140 additional Chinese firms.

Gina Raimondo, the US Commerce Secretary, described this action as the culmination of the strategic approach adopted by the Biden-Harris administration, in alliance with international partners. The principal goal is to disable the People's Republic of China's efforts to indigenize the fabrication of next-gen technologies endangering the national security of the U.S.

China Tightens Its Grip on Rare Materials Supply

Over the recent past, China has begun to exert more control over its inventory of rare materials. It initiated limitations on antimony export — a mineral extensively employed for chip-making and the production of military equipment — in September. Moreover, now it has made it mandatory for exporters to deliver exhaustive explanations about their use in Western supply chains as cited by The New York Times.

The Road Ahead is Bumpy

Possibilities abound of tensions escalating further in the coming months. President-Elect Donald Trump has expressed a commitment to imposing further tariffs on Chinese goods. This move could usher in a new era of trade hostility between the two economic superpowers.

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