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MoFA-Limit On Chip-Making Materials Not Targeting Any Specific Country


(MNI) London-Wires carrying comments from the Chinese Ministry stating that the country's decision to restrict the export of chip-making materials is "in accordance with law" and "is not targeted at any specific country". On 3 July, the WSJ reportedthat China would place export restrictions on the rare earths gallium and germanium, crucial in the production of semiconductors, 5G base stations, and solar panels.

  • The export controls come a short time after the Netherlands imposedits own export restrictions on equipment used to make high-tech chips that could be used in advanced weaponry systems.
  • The tit-for-tat moves risk restricted supply of chips in the future, with China reliant on US/Japanese/Dutch tech to develop its own chips, but the nations of the West largely reliant on Chinese rare earth metals for the production of semiconductors.
  • This in turn risks supply chain shortages in both high-tech equipment and consumer goods, which could impact economic confidence going forwards.

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