2023-07-05 10:00:27 ET
The Chinese government is restricting exports of key materials used in personal computers as a war with the U.S. over advanced %Microchips and semiconductors escalates.
Going forward, special licenses will be needed to export the metals gallium and germanium from China, which are two of the key materials used in modern computers.
The export restrictions come days after the U.S. federal government in Washington, D.C. announced new measures to curb China’s access to advanced microprocessors made by American companies such as %Nvidia () and %AdvancedMicroDevices ().
China is the top producer of both gallium and germanium, metals that are used in semiconductors and other computer parts. The metals are also widely used in solar panels.
Semiconductors, which power everything from mobile phones to satellites are at the centre of an increasingly hostile dispute between the world's two biggest economies.
The U.S. government is restricting China's access to microchips and semiconductors over fears that they could be used for military purposes.
The American government now requires licences for companies exporting chips to China. The restrictions impact 23 types of semiconductors that are made in America.
The Chinese government in Beijing has retaliated by imposing restrictions on U.S. firms linked to the American military, such as Lockheed Martin (LMT).
China’s government has called the U.S. a “tech hegemony” and vowed further trade actions in coming months.