© Reuters. A Chinese flag is displayed next to a “Made in China” sign on a circuit board printed with semiconductor chips, in this illustration photo taken February 17, 2023. REUTERS/Florence Lu/Illustration/File photo
(Reuters) – China will control exports of some metals used to make semiconductors, escalating a technology war with the United States and potentially causing more disruption to global supply chains.
Here’s what people are saying about the scale:
Kazuma Kishikawa, economist at the Daiwa Research Institute:
“From what I’ve seen, they didn’t limit the target countries to the export restrictions, but since Japan, the US and the Netherlands would normally be included, I think it’s fair to say that this is a de facto retaliatory measure.”
Peter Arkell, President of the World Mining Association in China:
“It is no surprise that China has responded to the US-led campaign to restrict China’s access to microchips. With nearly 90% of the world’s production of these secondary metals, China has restricted US trade where it hurts. It seems to be a very basic tactic. for business negotiation.
“Gallium and germanium are just two of the secondary metals that are very important to the range of technical products, and China is the dominant producer of most of these metals. It is fanciful to suggest that another country could replace China in the short or even medium term.”
Stuart Randall of Shanghai Consulting:
“Chinese suppliers will lose customers, and in the short term that could cause supply issues if China actually refuses to export them.
“To me it doesn’t sound like a choke point because there’s no hard technological barrier. It’s a supply chain logistical barrier to finding new raw material suppliers.”
A manager at a Germanium producer in China declined to name him because of the sensitivity of the matter:
“The number of inquiries from overseas rose overnight after the news of the export control. Many foreign buyers, mainly from Europe, Japan and the United States, are asking since it can take two months to obtain an export license, so foreign buyers will need to stock up on more shipments in advance to maintain to production in at least two months.
“The bid prices in the domestic market and the export market have risen to 10,000 yuan (1,380 US dollars) per kg and more than $1,500 per kg, respectively.”