China Fights Back: Bans Exports in Retaliation to US Chip Sanctions

China has retaliated against US chip sanctions by imposing bans on exports, escalating the ongoing tech tensions between the two nations.

China has announced a ban on exporting key high-tech materials to the United States, citing “national security” concerns. The banned materials include gallium, germanium, antimony, and superhard materials, which have potential military applications.

The Chinese Commerce Ministry made this declaration in response to Washington's latest crackdown on Beijing's chip sector. The ban, which takes effect immediately, prohibits the export of these materials to the US, with the ministry stating, “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.”

The ban also requires stricter review of end-usage for graphite items shipped to the US. China's decision to impose these restrictions comes after the US added 140 Chinese companies to its “entity list,” subjecting them to strict export controls. Both countries claim that their respective export controls are necessary for national security reasons.

The looming Trump presidency has sparked a significant increase in trade restrictions. President-elect Donald Trump has threatened to raise tariffs on imports from China, which has led Beijing to take retaliatory measures. In July 2023, China announced that exporters would need licenses to send materials like gallium and germanium to the US.

Gallium and germanium are crucial components in making computer chips for cell phones, cars, and military technology. These materials are essential for various industries, and the restrictions on their export will likely have far-reaching consequences. China's move to control the export of these materials is seen as a strategic response to the US's increasing trade restrictions.

In August 2024, China's Ministry of Commerce announced export control measures on antimony and related items, which took effect on September 15. Antimony is a critical component in various products, ranging from batteries to weapons. The restrictions on antimony exports will likely impact industries that rely heavily on this material.

China, the world's largest supplier of gallium and germanium, has announced a ban on exporting these crucial materials to the United States. Gallium and germanium are essential for producing computer chips used in cell phones, cars, solar panels, and military technology.

This move comes after the US launched its third crackdown on China's semiconductor industry, adding 140 Chinese firms, including Naura Technology Group, to a list subject to strict export controls. China's Commerce Ministry protested, stating it would act to protect China's “rights and interests.”

In response, China has declared that it will restrict exports of gallium, germanium, antimony, and other key high-tech materials with potential military applications. The Chinese Commerce Ministry stated, “In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted.”

The White House has vowed to take “necessary steps to mitigate any Chinese 'coercive actions'” in response to China's announcement. This escalation in trade restrictions comes as President-elect Donald Trump prepares to take office, having threatened to raise tariffs on imports from China.