https://sputnikglobe.com/20230706/china-fired-first-retaliatory-salvo-in-microchip-sanctions-war-initiated-by-united-states-1111701466.html
China 'Fired First Retaliatory Salvo' in Microchip Sanctions War Initiated by United States
China 'Fired First Retaliatory Salvo' in Microchip Sanctions War Initiated by United States
Sputnik International
During an interview with Sputnik, K.J. Noh, a journalist and political analyst specializing in the Asia-Pacific region, noted that Beijing has apparently changed its approach to dealing with Washington due to the way the US conducts itself.
2023-07-06T15:52+0000
2023-07-06T15:52+0000
2023-07-06T15:52+0000
world
us
china
janet yellen
antony blinken
microchip
industry
sanctions
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US Secretary of State Antony Blinken visited Beijing only last month, but it remains unclear if he managed to help improve the relations between the US and China. Not long after his trip, US President Joe Biden publicly called Chinese President Xi Jinping a “dictator," potentially unraveling any progress.During an interview with Sputnik, K.J. Noh, a journalist and political analyst specializing in the Asia-Pacific region, noted that Beijing has apparently changed its approach to dealing with Washington due to the way the US conducts itself.When China asked the US to “walk back” its sanctions on China’s chip manufacturing industry, Blinken said that the US is essentially going to refrain from trying to “prevent China's development" after meeting with Chinese President Xi Jinping, Noh argued.Most importantly, Noh said, the US pressured the Dutch government “into preventing ASML, the manufacturer, from sending deep ultraviolet lithography machines to China,” despite the fact that this is an “established technology” and not some “new cutting edge” tech.Therefore, the pundit argued, China “fired their first salvo in response” by restricting exports of gallium and germanium, two rare earth elements used in semiconductor manufacturing. Starting on August 1, all entities who wish to export these rare earths from China must procure the appropriate licenses from the Chinese Ministry of Commerce.While the United States does have its own supply of germanium, it has not mined this resource for decades due to the pollution caused by the process, Noh remarked, adding that the US would have to “ignore a lot of environmental laws” if they decide to start mining this element on their own territory.Noh further suggested that China may eventually decide to add “more critical metals to its sanctions list,” and that the United States’ plan to “ice out China out of chip industry will not work” since Beijing would effectively be telling Washington: you may control the machinery but we own the raw materials.Relations between the United States and China continue to deteriorate since the beginning of a veritable trade war between the two states, which was initiated in 2018 by then-POTUS Donald Trump.In recent years, the US has been moving to impose restrictions on the export of semiconductors and microchips to China, pushing its allies to do the same.Washington has also cracked down on exports of chip technology to China in an effort to prevent Beijing from developing its own advanced microchip industry.For more in-depth analisys on the issue check Sputnik's Radio programme Fault Lines.
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us-china trade war, microchip industry, rare elements exports
us-china trade war, microchip industry, rare elements exports
China 'Fired First Retaliatory Salvo' in Microchip Sanctions War Initiated by United States
US Secretary of the Treasury Janet Yellen has arrived in China today in what appears to be the second attempt by Washington this year to salvage relations with Beijing via talks conducted by a high-ranking US official.
US Secretary of State Antony Blinken visited Beijing only last month, but it remains unclear if he managed to help improve the relations between the US and China. Not long after his trip, US President Joe Biden publicly called Chinese President Xi Jinping a “dictator," potentially unraveling any progress.
During an
interview with Sputnik, K.J. Noh, a journalist and political analyst specializing in the Asia-Pacific region, noted that Beijing has apparently changed its approach to dealing with Washington due to the way the US conducts itself.
When China asked the US to “walk back” its sanctions on China’s chip manufacturing industry, Blinken said that the US is essentially going to refrain from trying to “prevent China's development" after meeting with Chinese President Xi Jinping, Noh argued.
“Then right after this meeting is over, what happened?” he inquired, referring to the aforementioned meeting between Xi and Blinken during the US State Secretary’s visit to China. “Biden called Xi a dictator, Blinken affirms that he's a dictator. They send the USS Ronald Reagan right near China.”
Most importantly, Noh said, the US pressured the Dutch government “into
preventing ASML, the manufacturer, from sending deep ultraviolet lithography machines to China,” despite the fact that this is an “established technology” and not some “new cutting edge” tech.
Therefore, the pundit argued, China “fired their first salvo in response” by restricting exports of gallium and germanium, two
rare earth elements used in semiconductor manufacturing. Starting on August 1, all entities who wish to export these rare earths from China must procure the appropriate licenses from the Chinese Ministry of Commerce.
While the United States does have its own supply of germanium, it has not mined this resource for decades due to the pollution caused by the process, Noh remarked, adding that the US would have to “ignore a lot of environmental laws” if they decide to start mining this element on their own territory.
“So but I think what this will happen is it will send the price of these minerals up. It will also send the price of chips up,” he mused.
Noh further suggested that China may eventually decide to add “more critical metals to its sanctions list,” and that the United States’ plan to “ice out China out of chip industry will not work” since Beijing would effectively be telling Washington: you may control the machinery but we own the raw materials.
“Eventually China will invent the machinery, the lithography machines that the US is not giving or preventing from going to China,” Noh explained. “But you cannot invent a metal, you cannot invent an element. There's no way around that.”
Relations between the United States and China continue to deteriorate since the beginning of a veritable trade war between the two states, which was initiated in 2018 by then-POTUS Donald Trump.
In recent years, the US has been moving to impose restrictions on the export of semiconductors and microchips to China, pushing its allies to do the same.
Washington has also cracked down on exports of chip technology to China in an effort to prevent Beijing from developing its own advanced microchip industry.
For more in-depth analisys on the issue check Sputnik's Radio programme Fault Lines. 
