The White House, along with a vast majority of Congress, perceives China's control over mineral supply chains as both an economic rivalry and a security concern. Trade-related matters concerning semiconductors and raw materials have been a prominent source of contention between the two nations. The relationship between the United States and China is highly strained and characterized by significant tension. Treasury Secretary Janet Yellen to China, the Chinese government made this announcement. Additionally, China dominates the production of lithium, cobalt, and graphite, all essential for battery manufacturing.
Furthermore, China holds significant control over supply chains for rare earth minerals, crucial components in various high-tech products. Their worries extend beyond these two lesser-known metals to include numerous minerals extensively produced and processed in China.Īccording to the Critical Raw Minerals Alliance, China is responsible for 60% of global germanium production and 80% of global gallium production. This situation has been a source of concern for the United States and its allied nations for quite some time. The Commerce Ministry of China has stated that implementing these export controls aims to protect the country's national interests. This move comes as a response to the United State's ongoing efforts to impose trade restrictions to limit China's access to semiconductor technology. The Chinese government recently revealed that buyers purchasing germanium and gallium, essential elements in computer chips, solar panels, and even military applications, will be required to acquire export permits starting August 1st.
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