German BDI Says Chip Element Export Curbs Show De-Risking Crucial

Following China's announcement of export curbs on gallium and germanium (two elements used in the manufacture of chips, 5G bases, and solar panels), wires reporting comments from Germany's BDI industry group stating that the move 'makes clear the urgency in reducing dependency for critical raw materials [from China].' Comments also coming from EU spox stating that Brussels is 'concerned these restrictions are unrelated to need to protect global peace.'

• On 3 July, the Chinese Ministry of Commerce confirmed the new export controls. According to the Securities Times, of the 300 tonnes of gallium and germanium mined annually worldwide China accounts for 290 tonnes.
• The announcement from China comes just a day after European Internal Market Commissioner Thierry Breton met with Japanese gov't officials, where they discussed cooperation on AI and chip manufacture in an effort to 'de-risk' their supply chains.
• It also comes just ahead of a visit to Beijing from US Treasury Secretary Janet Yellen. Like the EU, the US has also talked up 'de-risking' over decoupling. Trade/economic tensions had appeared to have been easing amid the high-profile US trips, but these latest export restrictions could damage prospects of further improvements.