China retaliates against US chip sanctions by banning exports of key high-tech materials: WGN Radio – Chicago

In a retaliatory move against the United States, China has announced a ban on the export of gallium and other key high-tech materials essential for the production of semiconductors. This decision comes in response to the recent sanctions imposed by the US on Chinese chipmaker SMIC, which have severely impacted the country’s semiconductor industry.

The ban on gallium, a crucial element used in the manufacturing of semiconductors, is expected to have a significant impact on global supply chains and could further escalate tensions between the two economic superpowers. China’s move is seen as a direct response to the US government’s efforts to restrict Chinese access to advanced semiconductor technology, which is considered a strategic industry by both countries.

The restrictions on gallium exports are part of a broader effort by China to reduce its dependence on foreign technology and strengthen its domestic semiconductor industry. The country has been investing heavily in research and development in recent years, but still relies heavily on imports for key materials and components.

The ban on gallium exports is likely to have far-reaching consequences for the global semiconductor industry, as China is a major producer of electronic devices and a key player in the supply chain. Analysts predict that the restrictions could lead to shortages of key materials and components, as well as higher prices for consumers.

Despite the potential impact on the global supply chain, China’s decision to ban the export of gallium and other high-tech materials is seen as a necessary step to protect its domestic semiconductor industry and assert its independence in the face of increasing US pressure. The move underscores the growing competition between the two countries in the high-tech sector and highlights the escalating tensions between the world’s two largest economies.