China is tightening controls on exports of metals used in the production of semiconductors

BEIJING, July 3 (Reuters) – China will control exports of some metals widely used in the semiconductor industry, China’s Ministry of Commerce announced Monday, in the latest episode in an escalating war over access to high-tech microchips between Beijing and the United States.

The controls, which China said are intended to protect national security and interests, will require exporters to apply for permission to ship certain gallium and germanium products.

The measure to manage exports of rare earth elements that Beijing classifies as strategic comes as Washington mulls new restrictions on the shipment of high-tech microchips to China, according to media reports.

The United States and the Netherlands are also preparing to deal with China’s chipmakers this summer by further restricting sales of chipmaking equipment as part of efforts to prevent their technology from being used to support the military.

China’s restrictions, which will take effect Aug. 1, will apply to eight gallium-related products: gallium antimony, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide.

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It will also apply to six germanium products: germanium dioxide, germanium supergrowth substrate, germanium ingot, germanium metal, germanium tetrachloride, germanium-zinc phosphide.

China’s Ministry of Commerce said in a statement that exporters will need to go through procedures to obtain export licenses.

The statement said those who export these products without permission and those who export in excess of the authorized quantities will be punished.

Germanium is also used in infrared technology, fiber optic cables, and solar cells.