China imposes a ban on the supply of rare earth materials – gallium and germanium. And these are the main components for the production of microcircuits. Now the United States will have to obtain a license. The United States sees it as China’s response to the recent sanctions that the Americans have imposed on Chinese companies.
A new twist in the so-called “chip war”. A number of American and European publications published such headlines today, after the Ministry of Commerce of the People’s Republic of China issued a statement – starting August 1, China will stop supplying rare earth materials such as gallium and germanium, which are used to make microcircuits. Now, suppliers will need to obtain a license from China’s Ministry of Commerce and Customs in order to export materials overseas.
“If a seller exports without permission, goes beyond the scope of the license or engages in other illegal activities, the Ministry of Commerce, Customs and other departments will impose administrative penalties in accordance with applicable laws and regulations “, said the Ministry of Commerce. .
Now, to export rare earths abroad, you have to overcome a whole bureaucratic chain, and it is not a fact that a license will eventually be obtained. The Ministry of Foreign Affairs of China explained the decision of the Ministry of Commerce with the protection of national interests and security.
“China has always strived to maintain the security and stability of global production and supply chain and has always applied fair, reasonable and non-discriminatory export control measures. The Chinese government’s export control of relevant goods in accordance with law is a generally accepted international practice and is not directed at any particular country,” Chinese Foreign Ministry spokesperson Mao Ning said.
But the United States sees it as China’s response to recent sanctions that states have imposed on Chinese companies. After all, it is Americans who are buying more and more Chinese gallium and germanium than others, which are mainly used in the defense industry. Here’s what Bloomberg writes about it.
“China’s actions come after the United States and its allies have escalated rhetoric against the country in recent weeks. The Joe Biden administration plans to block the sale of some chips used to run artificial intelligence programs, people familiar with the matter said last week.
The so-called “trade wars” of the global economic giants have been going on for more than a decade. But this conflict escalated under the 45th President of the United States. Donald Trump said during the election campaign that China was literally “raping” America economically. And since 2018, the politician has taken action. Along the way, introducing huge tariffs on goods imported from China and imposing sanctions on some Chinese flagships. In heaven, they answered the same thing.
“The trade war is hitting both countries because over the past 40 years the two economies have become very interdependent. China is the largest trading partner of the United States and vice versa,” says orientalist Kirill Kotkov.
Countries tried to resolve the conflict in 2019, then another year later, then another… to no avail. Now, this confrontation has reached a new level. China has long been seen as a serious force capable of pushing the United States onto the global pedestal. Everyone sees it except Joe Biden. Recently, during a meeting with the sponsors of his future electoral campaign, he declared that the Chinese economy is in serious trouble.
“People say China is a great power, but China has huge problems. They won’t be able to do what they have planned,” the White House press office quoted Biden as saying.
Nevertheless, China for Biden remains, probably, the main irritant. And this applies not only to the economy, but also to all other areas, including the military. In his recent speech, CIA Director William Burns said the PRC is America’s biggest rival and main long-term challenge.
“China is our biggest geopolitical and intelligence rivalry and our biggest long-term challenge. Over the past few years at the CIA, we’ve been working on how to respond to that. We’ve created a new center dealing exclusively with China, and it’s the only CIA research center that deals with a single country,” the CIA director said.
For more information on the economic confrontation between the United States and China, see the article by Alexander Fedorchak.
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