Tech war: US says 'firmly opposing' China's new restrictions on export of two strategic metals

The Joe Biden governmenton Thursday said that the United States “firmly opposes” the new restrictions imposed by China on the export of gallium and germanium — two strategic materials important for communications equipment, solar panels and semiconductors.

“These actions underscore the need to diversify supply chains,” said a spokesperson for the US Commerce Department, in an email sent to the South China Morning Post. The spokesperson stated that the United States would “engage with our allies and partners to address this and to build resilience in critical supply chains”.

The step of restricting the export of metals was taken by China in response to actions taken by Washington to limit the export of high-end US technology to China that could beused by Beijing for the development of advanced military and computing applications.

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China’s Commerce Ministry, citing “security and national interests”, on Monday stated that export controls will be imposed on germanium and gallium products from August 1, a step that analysts stated would intensify the tech war between the United States and China and complicate efforts of Washington to cut down reliance on Beijing for critical materials.

It would take “considerable time and investment to recreate even a portion of critical mineral supply chains”, stated Paul Triolo, senior vice president for China at the Albright Stonebridge Group.

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China’s Commerce Ministry on Thursday stated that the US and the European Union have been informed in advance by Beijing about its decision through “export control dialogue channels”.

The reaction of Washington to the latest development came as US Treasury Secretary Janet Yellen reached Beijing on a four-day visit to China, where she will be exploring areas of cooperation, amid turbulent ties between the two nations.

“While in Beijing, Secretary Yellen will discuss with officials the importance for our countries – as the world’s two largest economies – to responsibly manage our relationship, communicate directly about areas of concern, and work together to address global challenges,” stated the Treasury Department.

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Yellen's visit comes a month after US Secretary of State Antony Blinken met with senior Chinese officials and held a private meeting with Chinese President Xi Jinping in Beijing. Blinken, last week, said that he had made it clear that the US does not intend to contain the global and economic rise of China.

Beijing “almost certainly sees these controls as a potential bargaining chip”, Triolo stated.

Meanwhile, a veiled message was issued by Chinese Foreign Ministry spokesperson Wang Wenbin to Washington and its allies. “We oppose the overstretch of the national security concept and abuse of export control by a handful of countries and bullying practices of going all out to suppress and contain specific countries,” he stated.

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