The chip industry is facing a new crisis .. China moves to reduce exports of its materials

China’s move to restrict exports of some metals commonly used in the production of semiconductors, electric cars and technologically advanced industries has escalated the trade war with the United States and may exacerbate disruptions in global supply chains.

According to “Reuters” companies are rushing to respond to the sudden news announced yesterday. A US semiconductor chip producer said it had applied for export permits to reassure investors. A germanium producer in China said that inquiries from abroad and prices rose overnight.

The Chinese Ministry of Commerce said that from the first of August it will control exports of eight gallium products and six germanium products to protect its national security and interests, in a move that analysts saw as a response to Washington’s escalating efforts to limit China’s technological progress. “China has hit the US trade restrictions in a painful position,”said Peter Arkell, president of the China World Mining Federation.

“Gallium and germanium are just two types of secondary metals, but they are very important for a range of technology products, and China is the dominant producer of most of these metals . The suggestion that another country could replace China in the short or even medium term is a fantasy,”he said.

The restrictions imposed by China come as Washington is considering imposing new restrictions on the export of technologically advanced microchips to China, after a series of restrictions in the past few years.