On 3 December 2024, China banned shipments to the US of several minerals and metals used in semiconductor manufacturing and military applications, citing national security concerns.
The move, which prohibits the export to the US of products such as gallium, germanium, antimony, and superhard materials, strengthens China’s existing limits on critical mineral exports and represents a rapid retaliation to the US Commerce Department’s latest round of tech export controls announced on Monday, 4 December 2024.
These export controls, introduced on national security grounds, curtailed the sale of two dozen types of semiconductor-making equipment to China and restricted 140 Chinese companies from accessing American technology.
The measures add to the many existing US tech controls imposed against China in recent years, which have reduced the types of semiconductors that American companies are allowed to sell to China.
In addition to China’s retaliatory controls on strategic materials, the US government’s action also prompted four major Chinese industry associations to advise against using US chips on Tuesday, claiming they are “no longer safe” and advocating for domestic alternatives.
The warning may affect major companies such as Nvidia, AMD, and Intel and was criticised by the Semiconductor Industry Association, a US industry body.
Analysts view the coordinated warnings as a significant escalation in the trade war and China’s export ban on critical minerals as a major retaliatory measure.
Chinese semiconductor firms, including Naura Technology Group, stated that their inclusion in the US Department of Commerce’s Entity List will have minimal impact due to their focus on domestic markets, supply chain control, and the use of domestically sourced or alternative components.
