Beijing’s export limits on two metals essential to the production of modern technologies came into effect on Tuesday.
The move is seen as a reaction to increasing Western measures limiting the regime’s access to advanced semiconductors.
A day earlier, the Chinese regime also decided to limit the foreign sales of certain types of drones.
Beijing announced the measures restricting the export of gallium and germanium early last month, two metals critical to producing semiconductors, fiber optic products, and various green-energy technologies.
The new policy follows the Biden administration’s recent measures restricting Chinese companies access to advanced semiconductors. The administration’s measures include broad export controls and the CHIPS and Science Act, a $280 billion program intended to boost domestic manufacturing of semiconductors.
Other nations, including Japan, South Korea, and the Netherlands, have joined the United States in limiting China’s access to materials and technologies needed to manufacture high-end computer chips.
Chinese Ministry of Commerce License
From Tuesday on, Chinese companies will only be allowed to export gallium or germanium after obtaining a license from the Chinese Ministry of Commerce.
In the licensee application, companies must provide detailed information on the final recipient and the products they will be used for.
According to the European Union, China accounts for 80 percent of the world’s production of gallium—a metal used in the production of semiconductors, LEDs, and solar panels—and 60 percent of the world’s germanium—a metal essential for the production of fiber optics and infrared technologies.
The export curbs “send a clear signal that China holds all of the power in this dangerous game,” analyst James Kennedy told AFP, who called the measures “an unambiguous message” to the United States.
But Derek Scissors, a senior fellow at the American Enterprise Institute and China expert, told The Epoch Times that he doesn’t see it as an issue. “It only becomes a problem if the U.S. refuses to look for alternative sources,” Mr. Scissors said.
Drone Export Ban
On Monday, Beijing also curbed the export of certain types of drones, a measure taking effect in September.
From then on, exporters must provide details of the drones’ end use before being sold overseas.
A spokesperson from the Chinese Ministry of Commerce told AFP that the restriction was not aimed at “any specific country or territory” but mainly sought to avoid certain types would be “converted for military use.”
Last year, China’s largest drone manufacturer, DJI Technology Co., temporarily suspended its business activity in Russia and Ukraine as their products were being used extensively in combat by both warring sides.