Beijing jabs in US-China tech fight with chip material export curbs

Companies caught out by China's decision to restrict exports of two metals widely used in semiconductors and electric vehicles were racing to secure supplies on Tuesday as some industry suppliers worried that curbs on rare earth exports could follow.

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Monday's abrupt announcement of controls from 1 August on exports of some gallium and germanium products has ramped up a trade war with the US and could potentially cause more disruption to global supply chains.

Analysts saw the move, which the Chinese commerce ministry said was to protect national security, as a response to escalating efforts by Washington to curb China's technological advances. It came on the eve of US Independence Day and just before US Secretary of Treasury Janet Yellen visits Beijing.

"China has hit the American trade restrictions where it hurts," said Peter Arkell, chairman of the Global Mining Association of China.

The European Commission expressed concern, while Germany's Economy Minister Robert Habeck said any broadening of controls to materials like lithium would be "problematic".

One US semiconductor wafer manufacturer said on Tuesday it was applying for export permits, while a Chinabased germanium producer said buyer enquiries had come in as prices surged.

The eight gallium and six germanium products cited are also used in other high-tech industries.