A representative for the US Commerce Department stated on Wednesday that Washington "firmly" opposes China's export restrictions on the metals gallium and germanium, which are used to create semiconductors and other devices. The spokesperson also stated that Washington will confer with its allies and partners to find a solution.
China imposed export restrictions on products containing the metals gallium and germanium earlier this week. These materials are utilized in fiber optic cables and electric vehicles. The sudden announcement of controls starting on August 1 has caused businesses to scramble to acquire supply and raised costs.
High-speed chips for computers, polymers, night-vision equipment, and satellite imagery sensors are all made of germanium. It is also employed in military uses. Satellites, radio and radar equipment, LEDs, and gallium are all examples of its application.
The necessity for supply chain diversification is highlighted by these measures. In an email statement, a representative for the Commerce Department said that the US would work with partners and allies to cope with this and strengthen the resilience of key supply chains.
Economic observers viewed China's action as a reaction to Washington's intensifying attempts to stifle China's technology advancements. The move, which China's commerce ministry claimed was necessary to preserve national security, was viewed as a reaction to Washington.
Before visiting Beijing, Janet Yellen, the secretary of the U.S. Treasury made the statement on the eve of the Independence Day vacation in the United States.
Additionally, the European Commission has raised its concerns, and Robert Habeck, Germany's Economy Minister has stated that any expansion of regulations to include substances like lithium would be problematic.
The problem is the most recent development in US-China tensions which have been rising in the past few years over matters like trade tariffs, the cause of the COVID-19 epidemic, cyber safety, spying accusations, and technological rivalry.