China Escalates Trade War With US By Slapping Ban On Minerals Used In Ammunition, Semiconductors
China announced Tuesday that it is banning exports to the U.S. of some metals and rare minerals which can be used in the production of semiconductors and ammunition, according to the Financial Times.
China’s Ministry of Commerce announced that it is banning exports of “dual-use” items related to germanium, gallium, antimony and superhard materials to the US in retaliation against the US government’s latest trade restrictions, according to the Financial Times. The ministry also announced that it is placing more rigid controls on exports of graphite-related items, the Financial Times reported.
The key minerals and metals are used in the production of a variety of items, including batteries, military hardware and semiconductors, according to the Financial Times. Beijing has largely dominated the global supply of various crucial resources, the Financial Times reported. Researchers estimated there could be a $3.4 billion decrease in US gross domestic product if China implements a total ban on exports of germanium and gallium, minerals used in some semiconductors and other high-tech manufacturing, according to a November report from the U.S. Geological Survey.
China’s decision comes after the US Department of Commerce’s Bureau of Industry and Security (BIS) announced on Monday new restrictions designed to curb the People’s Republic of China’s capacity to produce advanced semiconductors that can be used in advanced weapon systems, artificial intelligence and advanced computing, according to a Monday press release. The BIS also added 140 unnamed Chinese companies to a restricted trade list. (Read more from “China Escalates Trade War With US By Slapping Ban On Minerals Used In Ammunition, Semiconductors” HERE)
