China has announced restrictions on the export of key semiconductor materials to the United States, escalating tensions in the ongoing technological rivalry between the two nations. Beijing’s decision, revealed on Tuesday, comes after Washington expanded its curbs on China’s advanced chip production capabilities.
China’s Commerce Ministry stated that exports of gallium, antimony, and germanium—critical components in chipmaking—will be restricted, citing “national security” concerns. Exports of graphite, a vital material for electric vehicle batteries, will also face tighter controls with stricter reviews of end-users and intended purposes.
“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,” the ministry explained.
The statement warned that violators of the regulations, regardless of location, would be held accountable under Chinese law.
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The announcement follows Washington’s new restrictions, introduced on Monday, targeting the export of advanced chips and chipmaking tools to 140 companies. The affected firms include Chinese chip manufacturers Piotech and SiCarrier, as well as Naura Technology Group, a leading producer of chipmaking equipment.
The US Commerce Department said the measures aim to limit China’s access to advanced chips that could be used in weapons systems and artificial intelligence.
Beijing, in response, accused the US of “politicising and weaponising economic, trade, and technological issues.” A statement from China criticised Washington for abusing export control measures, hindering normal trade exchanges, and introducing curbs that could have global implications.
China plays a dominant role in producing the materials now under restriction. According to a European Union report, the country accounts for 94% of global gallium production and 83% of germanium output. These materials are essential for integrated circuits, LEDs, fibre optics, and infrared technologies.
In recent years, Beijing had already imposed tighter controls by requiring exporters to disclose end-user information for these materials. The latest move escalates those restrictions to outright bans.
Experts warn that the back-and-forth export restrictions between the two superpowers could disrupt global supply chains. Chong Ja Ian, Associate Professor of Political Science at the National University of Singapore, described China’s actions as “a retaliatory strike at the US.”
“Should these back-and-forth curbs affect trade for third parties, this could disrupt supply chains and create inflationary pressures,” Chong said in comments to AFP.
The new restrictions highlight the growing strain between China and the US over technological dominance. Both nations have taken steps to secure critical materials and technologies, further complicating trade relations and raising concerns about global economic stability.