China will impose export controls on gallium and germanium, both used in the making of semiconductors and other electronic components. “In order to safeguard national security and interests, with the approval of the State Council, it is decided to implement export controls on items related to gallium and germanium," the Ministry of Commerce (MOFCOM) and the General Administration of Customs (GAC) said in a notice. The ministries listed eight items related to gallium, and six items related to germanium, which shall not be exported without approval after August 1. Chinese exporters will need to apply for permission from MOFCOM, with information about the end users and how the materials will be used. Exporters would face fines and criminal charges, if they export such items without permission. Germanium is used in fiber optics and semiconductors, while gallium is used in making chipsets for electronic devices such as computer motherboards and mobile phones.
China is the world’s largest producer of the two elements, with more than 95% of the global gallium output and 67% of germanium production. The EU has listed germanium as a critical raw material, as it imports about 17% of its supplies from China. China is also the top producer of rare earth elements, a group of 17 metals essential to modern technologies, including advanced space technology and weapons. The country has more than 90% of the world’s rare earth production capacity. China introduced an export control law in 2020 and eventually added more items to its list, including some rare earth-related items. The items added through the latest announcement include gallium nitride, gallium oxide, gallium phosphide, gallium arsenide, indium gallium arsenide, gallium selenide, gallium antimonide, zone-refined germanium ingot, zinc-germanium diphosphide, germanium epitaxial growth base, germanium dioxide and germanium tetrachloride.
Although it was not mentioned in the notice, the measure is a response the U.S. pressures to limit exports of chips and chip-making equipment to China. Recently, Dutch chipmaking equipment maker ASML said that 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. China has repeatedly voiced dissatisfaction over the Dutch move and called on the Dutch government to respect market principles and contractual obligations in order to avoid damage to bilateral cooperation. Japan’s export restrictions on 23 types of chip-related equipment and materials will also enter into force later this month. Chinese officials have also slammed the U.S.' abuse of export control, thereby disrupting global supply chains. As the U.S. and its allies continue to escalate their chip war and technological crackdown, it is normal and indeed crucial for China to take proactive measures to safeguard its technological development and national security and interests, Chinese industry analysts said, as reported by the Global Times and the South China Morning Post.
