iTWire - China hits back at US, places curbs on niche metal exports
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Wednesday, 05 July 2023 09:29
China hits back at US, places curbs on niche metal exports Featured
By Sam Varghese
China has hit back at the US and its allies over their moves to restrict Beijing's chip-making ambitions, placing curbs on exports of gallium and germanium.
Both metals and some of their compounds are used for making chips, communications equipment and some defence devices.
The Chinese Ministry of Commerce issued an order [translation] on 3 July outlining the restrictions, which would take effect on 1 August.
From that date onwards, Chinese suppliers would have to obtain a licence to export 38 products, including gallium nitride and germanium dioxide.
Last October, the US Department of Commerce introduced export control measures on high-end chip exports to China which have yet to be fully codified.
On 28 June, it was reported that Washington would further tighten these restrictions, with The Wall Street Journal saying moves were afoot to restrict leasing cloud services to AI firms in China as they were being used to get around the restrictions on chip exports.
Also claimed to be in the pipeline are laws that limit the extent of American investment in China and other countries considered to be geopolitical rivals.
On 30 June, the Dutch Government tightened the rules for export of semiconductor equipment. The Dutch firm ASML makes the world's most advanced lithography equipment.
"Due to these export control regulations, ASML will need to apply for export licenses with the Dutch government for all shipments of its most advanced immersion DUV lithography systems (TWINSCAN NXT:2000i and subsequent immersion systems)," a government announcement said.
"The Dutch government will determine whether to grant or deny the required export licenses and provide further details to the company on any conditions that apply."
Asked about the order on niche metals at a media conference on Tuesday, Foreign Ministry spokesperson Mao Ning said: "...China is always committed to keeping the global industrial and supply chains secure and stable, and has always implemented fair, reasonable and non-discriminatory export control measures.
"The Chinese Government’s export control on relevant items in accordance with law is a common international practice, and it does not target any specific country."
In September 2022, the US ordered Nvidia and AMD to stop selling some of their products, that could be used in artificial intelligence, to China.
In November last year, Nvidia said it was manufacturing new chips which would meet the export curbs laid down a month earlier, and could be sold to Chinese customers.
The curbs were on Nvidia's A100 and H100 integrated circuits — the latter was yet to be manufactured at the time — and any systems that included them.
The US Department of Commerce has not made any public statement about the Chinese move on niche metals.
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