Tensions escalate between China and the US!

The Chinese Ministry of Commerce has announced that it has imposed a new export ban targeting US defense industry manufacturers. In the statement, it was stated that the shipment of products and materials with dual-use in military and civilian fields to the US has been halted on the grounds of "national security."

While the export of minerals such as gallium, germanium, and antimony, which hold an important place in defense and weapons systems, has been banned "in principle," the export of graphite and derivative products used in batteries and fuel cells will be subject to strict controls.

China emphasized that these steps are in compliance with export control laws and were taken within the framework of the responsibility to prevent international nuclear proliferation.

China, which carries out approximately 70 percent of global rare metal production, has an 85 percent capacity in the processing of these metals. According to a report by the United States Geological Survey (USGS), it is projected that China's export restrictions will lead to a loss of 3.4 billion dollars in the US economy.

It is stated that between 2019 and 2022, China met 54 percent of US germanium imports and 63 percent of antimony imports. Furthermore, China alone carries out 89 percent of world gallium production and 77 percent of graphite production.

CHIP WARS CONTINUE 

This export ban comes after the US's restrictions on China in the chip sector. The US Department of Commerce had banned the export of 24 types of chip manufacturing equipment and related software, including chips used in artificial intelligence systems, to China.

Additionally, it was announced that 140 companies were added to the "entity list" in order to limit Chinese companies from purchasing technology from the US. US Secretary of Commerce Gina Raimondo stated that these measures are intended to hinder China's military modernization.

COUNTER-STEP FROM BEIJING  

China described these steps by the US as "restrictive and oppressive," arguing that they are contrary to international trade rules. Chinese Foreign Ministry Spokesperson Lin Jian criticized the US's policies that harm all countries, while emphasizing that China will take the necessary measures to protect the rights of its companies.

COMPETITION HEATS UP 

This "chip war" between the US and China is deepening the competition between the two countries in technology and the defense industry. While the CHIPS and Science Act, which came into effect in 2022, aims to limit China's access to advanced technology, China is also shaping its export policies on critical minerals and materials in response to these strategies.

News Source: 12punto