PEARSON PLC ORD 25P  PSON.L 
$1,026.00  $0.5  0.05%  
DIAGEO PLC ORD 28 101/108P  DGE.L 
$2,496.50  $0.5  0.02%  
RECKITT BENCKISER GROUP PLC ORD  RKT.L 
$4,493.00  $85.00  1.93%  
LLOYDS BANKING GROUP PLC ORD 10  LLOY.L 
$59.66  $0.14  0.24%  
MELROSE INDUSTRIES PLC ORD GBP0  MRO.L 
$556.20  $6.80  1.21%  
FRESNILLO PLC ORD USD0.50  FRES.L 
$607.00  $7.00  1.17%  
NATWEST GROUP PLC ORD 107.69P  NWG.L 
$337.50  $2.50  0.74%  
WEIR GROUP PLC ORD 12.5P  WEIR.L 
$1,913.00  $2.00  0.10%  
STANDARD CHARTERED PLC ORD USD0  STAN.L 
$721.40  $3.20  0.44%  
ENDEAVOUR MINING PLC ORD USD0.0  EDV.L 
$1,806.00  $70.00  4.03%  
OCADO GROUP PLC ORD 2P  OCDO.L 
$411.10  $19.70  4.57%  
ANGLO AMERICAN PLC ORD USD0.549  AAL.L 
$2,222.00  $37.50  1.72%  
ASHTEAD GROUP PLC ORD 10P  AHT.L 
$5,242.00  $56.00  1.06%  
SEGRO PLC ORD 10P  SGRO.L 
$901.20  $4.20  0.46%  
BAE SYSTEMS PLC ORD 2.5P  BA.L 
$1,259.50  $12.50  0.98%  
VODAFONE GROUP PLC ORD USD0.20   VOD.L 
$70.44  $0.14  0.20%  
HSBC HOLDINGS PLC ORD $0.50 (UK  HSBA.L 
$663.00  $3.10  0.47%  
GLENCORE PLC ORD USD0.01  GLEN.L 
$433.35  $0.05  0.01%  
ROLLS-ROYCE HOLDINGS PLC ORD SH  RR.L 
$443.90  $16.10  3.50%  
UNITE GROUP PLC ORD 25P  UTG.L 
$922.00  $2.00  0.22%  
ANTOFAGASTA PLC ORD 5P  ANTO.L 
$1,946.00  $33.00  1.73%  
CRODA INTERNATIONAL PLC ORD 10.  CRDA.L 
$4,059.00  $4.00  0.10%  
KINGFISHER PLC ORD 15 5/7P  KGF.L 
$277.50  $0.4  0.14%  
SPIRAX GROUP PLC ORD 26 12/13P  SPX.L 
$8,630.00  $20.00  0.23%  
TAYLOR WIMPEY PLC ORD 1P  TW.L 
$156.60  $0.6  0.38%  
WPP PLC ORD 10P  WPP.L 
$741.40  $8.80  1.17%  
RIO TINTO PLC ORD 10P  RIO.L 
$4,937.50  $65.50  1.34%  
HOWDEN JOINERY GROUP PLC ORD 10  HWDN.L 
$947.50  $12.50  1.34%  
MONDI PLC ORD EUR 0.22  MNDI.L 
$1,554.00  $19.50  1.24%  
HARGREAVES LANSDOWN PLC ORD 0.4  HL.L 
$1,096.00  $9.00  0.81%  
BARRATT DEVELOPMENTS PLC ORD 10  BDEV.L 
$506.60  $11.00  2.22%  

China Imposes Export Controls on 2 Crucial Metals, Impacting Tech Industries

by Rahil M
0 comment

China has implemented export restrictions on two essential metals, gallium and germanium, which are crucial to the semiconductor, telecommunications, and electric-vehicle industries.

China has implemented export restrictions on two essential metals, gallium and germanium, which are crucial to the semiconductor, telecommunications, and electric-vehicle industries. This move represents an escalation in the ongoing trade war on technology between China, the United States, and Europe. The Ministry of Commerce of China announced on Monday that starting from August 1, gallium and germanium, as well as their chemical compounds will be subject to export controls aimed at protecting Chinese national security.

Under the new regulations, exporters of these metals will be required to obtain licenses from the commerce ministry in order to ship them out of the country. Additionally, they will need to report details of the overseas buyers and their applications. China’s drive for technological dominance in fields such as quantum computing, artificial intelligence, and chip manufacturing has faced resistance from the United States and its allies. The export restrictions come at a time when countries worldwide are actively working to reduce their dependence on foreign equipment in their supply chains.

The impact of these export controls on the tech industry will depend largely on the existing stockpiles of equipment. Analysts suggest that in the short term, it may serve as a show of strength by China. However, if the restrictions continue for an extended period, prices could increase. Gallium and germanium are critical in the production of compound semiconductors, which are used to enhance transmission speed and efficiency. China is the dominant global producer of these metals, with approximately 94% of the world’s gallium production taking place in China, according to the UK Critical Minerals Intelligence Centre.

While gallium and germanium are not particularly rare, China’s ability to maintain low prices has made them attractive to various industries. However, with restricted supply, production in other countries may increase, leading to higher prices. These metals are typically byproducts of processing other commodities such as coal and bauxite, which is the base for aluminum production. Christopher Ecclestone, a principal at Hallgarten & Co, noted that once the price suppression ends, it becomes more viable to extract these metals in the West. This could ultimately result in a loss of China’s market dominance in the long run, as has happened in other industries like antimony, tungsten, and rare earths.

In addition to China, other countries also produce gallium and germanium. Japan, South Korea, Russia, and Ukraine are among the countries that produce gallium, while germanium is produced in Canada, Belgium, the United States, and Russia, according to the CRU Group, a metals industry intelligence provider.

The announcement of these export controls did not significantly impact the shares of companies involved in the production of compound semiconductors. Companies like Wolfspeed Inc. and NXP Semiconductors NV saw little change or even traded higher when US exchanges opened on Monday. Representatives for Wolfspeed and NXP did not immediately provide comments on the matter.

China’s decision to impose export controls comes in the midst of heightened tensions between the US and its allies against China. The Biden administration is reportedly planning to block sales of certain chips used in artificial intelligence programs. Earlier this year, the Chinese government banned the products of US chipmaker Micron Technology Inc. from critical sectors after citing cybersecurity risks. Furthermore, the Dutch government recently announced measures that would prevent ASML Holding NV, a company with a near-monopoly on the machines needed to produce advanced semiconductors, from selling some of its machines to China. These recent developments highlight the increasing tensions and competition for dominance within the global tech industry as major players strive to safeguard their national interests.

You may also like

Leave a Comment

Subscribe to Our Newsletters

We are a UK-based business awards firm that specializes in recognizing and celebrating exceptional achievements across various sectors. Our team of experts is dedicated to delivering world-class services, including event management, judging, and award design. With a focus on quality and excellence, we aim to showcase the best of international businesses and inspire future success.

Contact us: [email protected]

© 2022 – The Business Pinnacle. All Right Reserved. Developed by Aapta

The Business Pinnacle