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China’s Export Restrictions: A ‘Warning’ to the US

Metropolis Desk- 

Chinese state media has defined export curbs on rare metals that are needed to manufacture semiconductors and electric vehicles as a “warning” to the United States that China will not be forced out of global supply chains.

The technology “iron curtain” might potentially harm international supply and industrial chains, according to a Global Times editorial that was published on Tuesday. Washington and its allies allegedly aimed to stifle China’s tech industry.

The state-run tabloid stated: “But now the question is how long Washington can ignore the warning over the repercussions when China starts taking lawful and reasonable measures to safeguard its national security and interests.”

“Compared with the US pressuring allies to cooperate on chip bans against China, China’s move this time may be more of a warning, showing that China will not be passively squeezed out of the global semiconductor supply chain,” the newspaper continued.

Separately, a former Chinese official was cited on Wednesday by the state-run China Daily as saying that Beijing’s penalties and actions were “just the start” and that the curbs were just the beginning.

However, the state-run tabloid asked, “How long can Washington disregard the warning over the repercussions when China starts taking legal and reasonable steps to protect its national security and interests?

According to the newspaper, “China’s move this time may be more of a warning, demonstrating that China would not be quietly squeezed out of the global semiconductor supply chain, in contrast to the US persuading allies to join on chip restrictions against China.

Separately, a former Chinese official was quoted by the government-run China Daily on Wednesday as saying that Beijing’s penalties and actions were “just the start” and that the curbs were just the beginning.

Wei Jianguo, a former vice minister of commerce, stated in an interview that “(China’s) export control of chip-making materials was a well-thought-out heavy punch,” adding that countermeasures would intensify as long as actions aimed at China’s high-technology sector continued.

To “preserve security and national interests,” the Chinese Ministry of Commerce and China Customs said on Monday that exports of some gallium and germanium items will need special permission starting on August 1.

The declaration was made in response to rumors that the US is mulling new limitations on the shipment of artificial intelligence chips to China as part of its most recent effort to stifle the Chinese tech industry.

In recent years, China and the US have engaged in an intense struggle for strategic clout, which has resulted in the announcement of tit-for-tat sanctions on significant industries, including sophisticated semiconductors.

While germanium is used to manufacture optical fibers and infrared camera lenses, gallium is utilized to make integrated circuits, LEDs, and photovoltaic panels for solar panels.

The European Commission estimates that China is responsible for around 80% of the world’s production of rare metals.

The European Commission called on Beijing to base export restrictions on “clear security considerations in line with the WTO [World Trade Organization] rules” on Tuesday in response to Beijing’s limitations on rare metal exports.

Source- Al Jazeera

MD IMRAN HOSSAIN
MD IMRAN HOSSAINhttps://themetropolisnews.com/
Md. Imran Hossain, a certified SEO Fundamental, Google Analytics, and Google Ads Specialist from Bangladesh, has over five years of experience in WordPress website design, SEO, social media marketing, content creation, and YouTube SEO, with a YouTube channel with 20K subscribers.

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