China slaps export curbs on essential chip-making metals

Police officers patrol past some Chinese national flags set up for marking the 24th anniversary of Hong Kong handover to China at a street in Hong Kong Thursday, July 1, 2021. AP-Yonhap

China said on Monday it would slap export controls on two rare metals essential for the manufacture of semiconductors over security concerns, as Beijing and Washington tussle over the global market for chips.

Exports of gallium and germanium, of which China is a major producer, will require a license from August 1, according to a guideline issued by the Ministry of Commerce and China Customs.

The final recipient of the exports and the purpose of their use will have to be specified, the text said.

The need to "preserve security and national interests" was the reason for the measures, it said.

Gallium, which is found in integrated circuits, LEDs and photovoltaic panels for solar panels, among other things, is considered a critical raw material by the European Union. (AFP)