China plans to take further measures to respond to US export restrictions

Wei Jianguo, a former vice minister of Commerce of China, said that China’s recent decision to impose restrictions on the export of gallium and germanium metals is “just the beginning” of a series of measures Beijing intends to take in response to the restrictions imposed by the United States on the export of advanced electronics, especially chips to China.

The Chinese state newspaper China Daily quoted Jiangsu as saying that China has a lot of tools to retaliate, if the United States plans to impose tighter restrictions on the export of technology to Beijing.

He added that the decision to impose restrictions on the export of the two metals, which are mainly used in the manufacture of electronic chips, was made after deep reflection and “will not only scare certain countries, but will cause him great pain”.

Bloomberg News Agency quoted Jiangsu as saying that China will step up its countermeasures if the United States imposes further restrictions on the export of technology.

The Ministry of Commerce and the General Administration of customs of China announced last Monday the government’s intention to impose restrictions on exports of gallium and germanium metals used in the manufacture of electronic chips from the first of August, under the pretext of protecting China’s national security and national interests.

The ministry added that companies wishing to export these minerals and related materials will need to obtain a prior permit from the government.

China is a major producer of twenty basic raw materials, including gallium, germanium and what are known as rare earth metals used in many vital industries ranging from electronics to spacecraft.