ANALYSIS – Communist China is clamping down on exports of two rare strategic minerals – gallium and germanium – beginning August 1 for “national security reasons.”
China is the world’s largest source of these two rare metals, which are produced in small amounts but used for myriad high-tech products.
Both gallium and germanium are among 50 minerals that the U.S. Geological Survey (USGS) deems “critical,” meaning they are essential to the economic or national security of the U.S. and their supply is vulnerable to disruption.
The Chinese move, which was announced ahead of Treasury Secretary Janet Yellen’s visit to Beijing last week, is widely seen as a response to U.S. restrictions on technology sales to China.
It also targets key elements of the Pentagon’s supply chain. (RELATED: Devastating US War With China Over Taiwan Coming Soon – But When?)
The U.S. earlier blocked China’s access to advanced Western chips and the technology to manufacture them and has persuaded the Netherlands and Japan to limit exports of chipmaking tools as well.
The hope is to delay or derail the ruling Communist Party’s ambitions to increase its global influence by becoming a leader in clean energy, telecoms, artificial intelligence and other emerging fields, using Western technology.
China wasn’t happy and this is their response: “You don’t give us chips, we won’t give you the minerals to make them.”
China accounted for about 98% of the world’s gallium production in 2022, estimated at 430 tons.
China was also the world’s leading producer of germanium last year, with the country controlling 68% of global refinery production, estimated at 140 tons, according to USGS.
The two silicon alternative niche metals are essential in producing advanced microchips used in communications, electric vehicles and military industries – including radars, high-power lasers, missiles, electronic warfare and satellite technology.
Both metals are increasingly used in making computer chips because they can handle higher voltages than silicon.
Gallium has long been identified as an important component in high energy radars.
The United States gets about half its supply of both metals directly from China. (RELATED: One Of America’s Most Liberal Colleges Gives Communist China Access To US Nuclear Facilities After Quarter-Billion Dollar Payoff)
While the United States depends on these rare elements for its high-tech industries, Japan, South Korea and Europe are even more dependent.
Japan is the world’s biggest importer of gallium and germanium, spending more than $200 million on the two silvery-white metals last year. South Korea follows with $171 million.
Kim Yang-Paeng, a researcher at the Korea Institute for Industrial Economics and Trade, said the restrictions were “worrisome” for South Korean chipmakers. “Korean companies can find alternative sources, but it will take some time,” said Kim.
China exported 94 tons of gallium and 43.7 tons of germanium in 2022. U.S. imports were worth about $60 million, according to USGS.
The EU imported $130 million of germanium in 2022, according to data from S&P Global Market Intelligence.
The two silvery-white metals “are critical, they are essential for our industry, especially for their use in strategic sectors,” a European Commission spokesperson said in reaction to Beijing’s decision.
Threatening supply chains is clearly part of China’s coercive playbook. The latest dispute opens a new chapter in the increasingly fierce technology race that has pitted the United States and, to a lesser extent, Europe against China.
And the United States and its allies see the danger of relying on China. The U.S. has numerous ways to mitigate this latest Chinese restriction, such as restarting its own production, and recycling the minerals from discarded tech. (RELATED: Biden Admin Deals Blow To Mining Industry – Gives Initiative To China)
Meanwhile, in March, the Commission presented new legislation to reduce dependence on third countries to access these CRMs.
By 2030, the EU should be no more than 65% dependent on a third country like China for imports of 18 critical raw materials.
The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.
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“Nothing to see here folks, move along.” Oh, dear, Bumbling Buffoon BEIJING Biden won’t do anything to anger the CCP – it might interfere with the “big guy’s” 10% cut!
Tell ya what, if I wanted to sell out the US, like Biden is doing, I’d sure as hell make sure my payment was worth far more than 10% of Hunter’s! I guess Hunter needs more than Joe, cuz sniffing coke is far more expensive than sniffing somebody’s hair. And losing coke is far more expensive than losing your mind.
Cant we use our own ores for process?
Its probably much cheaper to use Chinese slave labor than to pay US miners.
Well, no big deal – we’ll just cut them off from seeing our military drag shows.
That oughta’ fix ’em!!!
LoL
I would charge UCBerkley administration with treason (link to article in this one). And we NEVER should have allowed ourselves to rely on China. If we are so damn hell bent on pointing out all of China’s evils, why then do we allow our businesses, government and population, deal in any way, shape or form. I’ll tell you why, cheap labor, chinese prostitutes, and $$$.
How or by whom in this world did America allow this kind of evil control by very evil things! Something needs to happen to whoever allowed this it was obviously a nefarious activity!
The liberal progressives orchestrated that move.
I guess sending old Grandma Yellen to China to BOW THREE TIMES did not help? Now what, pray tell?
Don’t worry, democrats will pass legislation to make us even more dependent on the elements. That’s what they do, cause irreparable problems on our country.
Why are we not digging our own rare earth minerals? Did the water become posiond by FDA with stupid?? Damb??