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Metropolis Desk-
The Chinese government is tightening regulations on the export of two crucial components used to create computer circuits. The world’s largest producer of the metals, China, will require special licenses starting the next month to export gallium and germanium.
It follows Washington’s initiatives to limit Chinese access to some cutting-edge microprocessors.
The news was made just days before US Treasury Secretary Janet Yellen’s crucial trip to Beijing.
The limitations were required, according to China’s Ministry of Commerce, to “safeguard national security and interests.” Metallic silver is utilized in semiconductors, communications, and defense equipment. They are also important components in items like solar panels.
The two largest economies in the world are engaged in a nasty trade war over semiconductors, which power everything from mobile phones to military weapons.
The US has taken steps to limit China’s access to technology, including processors used in supercomputing and artificial intelligence, that it believes may be exploited for military purposes.
No matter where in the globe the chips are produced, Washington stated in October that it would want licenses from businesses exporting them to China using US equipment or software.
Several nations, notably the Netherlands and Japan, have joined the efforts.
The Netherlands said last week that it will limit the export of some machinery used in the manufacture of semiconductors. This came after the Netherlands announced plans to limit the export of its “most advanced” microprocessor technology earlier this year.
The controls are anticipated to have an impact on Dutch ASML, a significant participant in the global semiconductor supply chain.
During a recent speech before Congress, she stated, “I believe that trade and investment that is as open as possible benefits both us and China, and it would be disastrous for us to attempt to decouple from China.”
Ms. Yellen will visit the nation this year as the second top US official.
High-level communication between the competing superpowers was restarted in June when US Secretary of State Antony Blinken met with President Xi Jinping in Beijing.
Source- BBC News
