China MOFCOM Criticises US Chip Export Stance

(MNI) London - Wires reporting comments from the Chinese Ministry of Commerce regarding the recently-announced export restrictions on gallium and germanium, two elements used in the production of semiconductors, 5G bases, and solar panels. MofCOM states that "China's metal export controls don't focus on any country". Says that "We haven't received applications for export licences yet", and that "We will approve gallium and germanium exporters who qualify."

• On reports that the US is considering further restrictions on chip exports to China, MofCOM states the "US approach is detrimental to Chinese companies' legitimate interests, hinders global economic and trade exchanges and cooperation."
• The increasing tit-for-tat restrictions regarding chips and their components/raw materials continues to present risks to global supply chains. In a worst-case scenario of sustained restrictions on raw material exports from China, the US could be forced to begin mining for these elements domestically, a very costly and environmentally damaging prospect. This would both push up prices of chips significantly and draw a major political backlash.