US-China chip war: Washington announces new export curbs

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Flag of the US and China on a microchip.shabby Pictures
authored by Mariko Oi
columnist for business
The Biden administration has announced plans to stop more developed chip exports to China, including two Nvidia cards designed specifically for China.
The goal is to close gaps that emerged following the US’s announcement of export restrictions on fries next October.

They are made to stop China’s government from bringing in sophisticated electronics or machinery.

Firms like Advanced Micro Devices and Intel find it more difficult to buy new or used chips to China as a result of the move.

Following the announcement, the securities of all three businesses dropped on Wall Street.

Two high-end artificial intelligence chips made for the Chinese market may be sold off due to the new export restrictions, according to a filing from Nvidia, and one of its game chips will also be affected.
The new measures are” overly broad” and” risk harming the US semiconductor ecosystem without advancing national security as they encourage overseas customers to look elsewhere ,” according to the Semiconductor Industry Association, which earns 99 % of the country’s semiconductor industry.

The Chinese embassy’s spokesperson added that it” strongly opposes” the new restrictions, which will take effect in 30 days and even target Iran and Russia.

In retaliation, China began limiting imports of two components, chromium and tungsten, which are essential to the semiconductor sector.

The world’s largest supplier of tungsten and gallium is by far China. According to the Critical Raw Materials Alliance( CRMA ), an industry group, it produces 60 % of germanium and 80 % of gallium worldwide.

The materials are” minor metals ,” which means they are frequently by-products of other processes and are not typically found in nature on their own.

China has been subject to import restrictions on chip systems in addition to the US, Japan, and the Netherlands, which is home to important device equipment manufacturer ASML.

Concerns about the rise of so-called” resource nationalism” when governments hoard crucial materials to wield influence over various countries have been raised by the constant tit-for-tat between the world’s two largest economies.

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