China retaliates at US chip restrictions by banning shipment of key materials

Dec 03, 2024

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Karah Rucker Anchor

By Karah Rucker (Anchor), Jodie Hawkins (Senior Producer ), Emma Stoltzfus (Video Editor )

The global chip war is ramping up with China banning exports of key materials to the United States. The move comes in response to the Biden administration tightening the country’s access to American technology.

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China’s Ministry of Commerce announced Tuesday, Dec. 3, that it will stop shipping rare minerals and metals used to make military components, semiconductors, batteries, electronics and solar panels. That includes gallium, germanium, antimony and graphite.

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The Biden administration expanded its technology curbs to China on Monday, Dec. 2, prohibiting the sale of certain types of chips and machinery, and adding more than 100 companies to a restricted-trade list.

This is the third move by President Joe Biden in the past three years to prevent China from acquiring and making advanced computer chips, citing national security threats to the U.S.

The chips are used for powering artificial intelligence and supercomputers that can be used to launch cyber attacks and design new weapons.

“Such practices seriously undermine the international economic and trade order, disrupt the stability of global production and the supply chain, and harms the interests of all countries,” a spokesperson for China’s Ministry of Foreign Affairs said.

Chinese industry groups are now calling for Chinese companies to purchase chips within China or from countries other than the United States, saying American chip products are no longer safe and reliable.

The groups did not go into detail on the issues with U.S. chips.

This all comes ahead of President-elect Donald Trump taking office next month. He has indicated he would continue to pressure China’s tech industry by hiking tariffs on Chinese goods.

Tags: China, CHIPS Act, CHIPS and Science Act, Hackers, Semiconductor Chips, Semiconductors, Technology, United States

[KARAH RUCKER]

THE GLOBAL CHIP WAR IS RAMPING UP WITH CHINA NOW BANNING EXPORTS OF KEY MATERIALS TO THE UNITED STATES.

THE MOVE COMES IN RESPONSE TO THE BIDEN ADMINISTRATION TIGHTENING THE COUNTRY’S ACCESS TO AMERICAN TECHNOLOGY.

CHINA’S MINISTRY OF COMMERCE ANNOUNCED TUESDAY IT WILL STOP SHIPPING RARE MINERALS AND METALS USED TO MAKE MILITARY COMPONENTS, SEMICONDUCTORS, BATTERIES, ELECTRONICS AND SOLAR PANELS. … INCLUDING GALLIUM, GERMANIUM, ANTIMONY AND GRAPHITE.

THE BIDEN ADMINISTRATION EXPANDED ITS TECHNOLOGY CURBS TO CHINA MONDAY, PROHIBITING THE SALE OF CERTAIN TYPES OF CHIPS AND MACHINERY ADDING MORE THAN 100 COMPANIES TO A RESTRICTED-TRADE LIST.

THIS IS THE THIRD MOVE BY PRESIDENT BIDEN IN THE PAST THREE YEARS TO PREVENT CHINA FROM ACQUIRING AND MAKING ADVANCED COMPUTER CHIPS, citing NATIONAL SECURITY THREATs TO THE U-S.

THE CHIPS ARE USED FOR POWERING A-I AND SUPER COMPUTERS THAT CAN BE USED TO LAUNCH CYBER ATTACKS AND DESIGN NEW WEAPONS.

A SPOKESPERSON FOR CHINA’S MINISTRY OF FOREIGN AFFAIRS RESPONDING TO THE LATEST RESTRICTIONS …

“SUCH PRACTICES SERIOUSLY UNDERMINE THE INTERNATIONAL ECONOMIC AND TRADE ORDER, DISRUPT THE STABILITY OF GLOBAL PRODUCTION AND THE SUPPLY CHAIN, AND HARMS THE INTERESTS OF ALL COUNTRIES.”

CHINESE INDUSTRY GROUPS ARE NOW CALLING FOR CHINESE COMPANIES TO PURCHASE CHIPS WITHIN CHINA OR FROM COUNTRIES OTHER THAN THE UNITED STATES SAYING AMERICAN CHIP PRODUCTS ARE NO LONGER SAFE AND RELIABLE.

THE GROUPS DID NOT GO INTO DETAIL ON THE ISSUES WITH U-S CHIPS.

THIS ALL COMES AHEAD OF PRESIDENT-ELECT DONALD TRUMP TAKING OFFICE NEXT MONTH.

HE HAS INDICATED HE WOULD CONTINUE TO PRESSURE CHINA’S TECH INDUSTRY … BY HIKING TARIFFS ON CHINESE GOODS.

FOR SAN – I’M KARAH RUCKER.

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