China’s export controls on key components for computer chip manufacturing are just the beginning, according to an influential trade policy adviser. The warning comes after China announced that special licenses will be required to export gallium and germanium, two metals crucial for making computer chips, starting next month.
Former Vice Commerce Minister Wei Jianguo spoke to the China Daily newspaper and stated that if Washington imposes tougher technology restrictions on Beijing, the Chinese government will escalate its countermeasures. He emphasized that the decision to restrict the export of industrial products and materials containing gallium and germanium was made after careful consideration.
This development follows a report by the Wall Street Journal, revealing the US government’s plans to limit China’s access to cloud computing. The move aims to close a loophole that allows Chinese artificial intelligence firms to bypass current chip export control rules. Cloud services provide customers with powerful computing capabilities without requiring them to purchase advanced equipment, such as chips.
The trade dispute between Washington and Beijing has primarily centered around semiconductors and other advanced technologies, with tensions escalating over the past few months. Reuters reported in May that US officials were considering tightening a rule designed to restrict the flow of artificial intelligence chips to China. This would involve imposing limits on the computing power of the chips. Additionally, in October last year, Washington introduced export control rules that effectively cut off China’s access to specific semiconductor chips made with US equipment.
In response to the US measures, China retaliated in May by banning the import of memory chips manufactured by Micron, the largest US producer. These actions highlight the growing tensions between the two economic powerhouses.
Chinese President Xi Jinping emphasized the importance of maintaining the stable and smooth functioning of regional and industrial supply chains ahead of US Treasury Secretary Janet Yellen’s visit to Beijing. Yellen’s visit aims to address economic issues between the two nations and find common ground for resolving the ongoing dispute.
In conclusion, China’s export controls on key components used in computer chip manufacturing are just the beginning of potential countermeasures. The Chinese government’s decision to restrict the export of gallium and germanium was made in response to mounting technology restrictions from the US. The trade dispute between the two nations continues to escalate as both sides impose restrictions on crucial semiconductor chips.
Source link
