On Monday, the Chinese Ministry of Commerce and the General Administration of Customs issued a notice stating that, in order to safeguard national security and interests, and with the approval of the State Council, China has decided to implement export controls on gallium and germanium-related items. The measures will officially take effect from August 1st. Gallium and germanium are important semiconductor materials, and it is widely believed that China’s move to control the export of key semiconductor raw materials is a response to the ban imposed by Europe and the United States on the entry of semiconductor manufacturing equipment into the Chinese market.
According to the notice, exporters should complete export license procedures in accordance with relevant regulations. They need to submit applications to the provincial-level commerce authorities, fill out the application form for the export of dual-use items and technology, and provide the relevant documents. The Ministry of Commerce is responsible for reviewing export applications or conducting joint reviews with relevant departments, and making decisions on approval or denial within the statutory time limit.
According to data, gallium compounds are high-quality semiconductor materials widely used in the optoelectronics and microwave communication industries. They are used in the manufacturing of microwave communication and microwave integrated circuits, infrared optics and infrared detectors, integrated circuits, and light-emitting diodes. According to a report by the European Commission in 2020, China accounts for 80% of gallium production.
Germanium is also an important semiconductor material used in the production of transistors and various electronic devices. Its main terminal applications include fiber-optic systems, infrared optics, and catalysts for polymerization reactions, as well as the manufacturing of electronic devices and solar power. According to a report by the European Commission in 2020, China also accounts for 80% of the production of this element.
The Dutch government recently announced that new regulations restricting the export of certain advanced semiconductor manufacturing equipment will come into effect on September 1st. These regulations are believed to aim at preventing the export of advanced lithography machines from ASML to China.
On July 1st, the Chinese Ministry of Commerce stated that in recent years, the United States has continuously generalized the concept of national security and abused export control measures in order to maintain its global hegemony. It has even sacrificed the interests of its allies and coerced other countries to implement semiconductor restrictions and containment against China, artificially promoting industry decoupling and chain-cutting, which has seriously damaged the global semiconductor industry’s development. China firmly opposes these actions. Source