On Monday, the Biden administration announced new limits on Chinese businesses, preventing them from accessing any foreign products that contain even a single US-made computer chip.
In response, China quickly fired back on Tuesday. The Chinese Ministry of Commerce announced an immediate ban on exporting certain “dual-use items” – materials that can be used for both civilian and military purposes. Specifically, China will block exports of rare-earth metals like gallium, germanium, antimony, and superhard materials to the United States.
“In principle, the export of gallium, germanium, antimony, and superhard materials to the United States shall not be permitted,” the ministry stated. These metals are crucial in tech manufacturing, and experts had previously warned that such trade restrictions could disrupt supply chains.
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Chinese foreign ministry spokesperson Lin Jian had already signalled this response, promising to “take measures to safeguard the rights and interests of its firms.” The ministry also announced stricter reviews of graphite exports, a material used in everything from power cables to nuclear reactors.
While China’s response might seem strong, experts note that their reaction to previous trade restrictions has been relatively mild. Some analysts suggest this could be a preemptive move ahead of potential future trade actions, including threats made by former President Donald Trump about increasing tariffs on Chinese goods.
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