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China on Monday announced export restrictions on two metals used in the manufacturing of semiconductors. Pool Photo by Doug Mills/UPI
China on Monday announced export restrictions on two metals used in the manufacturing of semiconductors. Pool Photo by Doug Mills/UPI | License Photo

July 4 (UPI) — China is imposing export restrictions on two metals used in the manufacturing of semiconductors, deepening a trade conflict between Beijing and democratic nations over the all-important chips.

China’s commerce ministry announced the implementation of export controls on gallium and germanium Monday, stating it was done “in order to safeguard national security and interests.”

The regulations require exporters to secure a license to ship the two metals and related products starting Aug. 1, the ministry said, adding that the end use and end user must be identified in the application.

“For the export of items listed in this announcement that have a major impact on national security, the Ministry of Commerce, together with relevant departments, shall report to the State Council for approval,” the ministry said in a statement.

The announcement comes after the Biden administration in October enacted chip export controls on China, on accusations that Beijing is using the technology to power its military modernization and monitor, track and surveil its own citizens.

Allies, including Japan and the Netherlands, have joined the effort despite attracting condemnation from Beijing, which in late May, banned companies working in the critical information security from buying products made by U.S. manufacturer Micron Technology, saying they are a security risk.

On Friday, the Netherlands imposed new trade restrictions banning the export of Dutch-made semiconductors and other high technology to China.

The announcement also comes days before U.S. Treasury Secretary Janet Yellen is to visit China for meetings with high-ranking officials to discuss their two countries’ economies.

The trip is to be held from Thursday to Sunday.

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