China retaliates to US ‘weaponizing’ of trade

China’s Ministry of Commerce has declared a ban on the export of certain dual-use items and essential raw materials in reaction to trade restrictions imposed by the United States. Read Full Article at RT.com

China retaliates to US ‘weaponizing’ of trade
China has implemented a ban on the export of various dual-use items and essential raw materials pivotal for semiconductor manufacturing and military purposes, as a direct response to the latest sanctions imposed by the United States.

On Monday, the US announced restrictions on a wide array of tools and software related to chipmaking destined for China.

According to a statement from the Chinese Ministry of Commerce released on Tuesday, these retaliatory actions were taken to protect national security interests and uphold international commitments.

The new regulations will prevent the export of dual-use items to US military users or for military applications. Additionally, China will impose strict controls on the export of gallium, germanium, antimony, superhard materials, and graphite-related dual-use items to the US.

The specified rare metals are crucial in the production of computer chips and other products like solar panels and advanced radar systems. China is the leading producer of gallium and one of the top exporters of germanium globally.

The US has not produced gallium since 1987 and between 2019 and 2022, it depended on China for 21% of its gallium imports, as indicated by the US Geological Survey. These imports have been cut in half compared to previous years in light of increased tariffs imposed by Beijing.

The Ministry of Commerce of the People's Republic of China (MOFCOM) has issued a warning that any organization or individual from any country or region found in violation of the new regulations will face legal repercussions. The regulations take effect immediately.

On the same day, the US Department of Commerce declared a ban on 24 types of chip manufacturing equipment, three software applications, and high-bandwidth memory exports to China. Moreover, 140 Chinese entities, including toolmakers, chip manufacturers, and investment companies, have been added to the department's blacklist due to their role in advancing China's domestic semiconductor capabilities.

In comments regarding the situation, a MOFCOM spokesperson stated that in recent years, the US “has overstretched the concept of national security, politicized and weaponized economic and technological issues, abused export control measures…”

These actions, the spokesperson noted, significantly undermine international trade regulations, the rightful interests of enterprises, and the stability of global industrial and supply chains.

The ongoing rivalry between the US and China, the world’s two largest economies, has intensified in key technology sectors, such as semiconductors. Washington has consistently tightened export controls to hinder Chinese firms from acquiring specific American components, citing national security concerns.

In response to the export restrictions, Beijing has criticized these moves as contrary to globally accepted market principles.

Ian Smith contributed to this report for TROIB News