The US-China tech war continues as Beijing imposes export restrictions on two metals vital for high-tech manufacturing in response to an AI chip ban.
The ongoing dispute between China and the US and its allies has escalated, and it looks like the prices of Gaming rigs could be among the first victims. China has announced controls on the export of gallium and germanium materials and products, in response to a proposal by the US that would see advanced AI chips banned from sale to Chinese businesses.
“China is the main producer of gallium and germanium materials and products in the world,” the Ministry of Commerce of the People’s Republic of China says. “In order to safeguard national security and interests, on the basis of law, it is hereby decided to control the export of gallium and germanium materials and products.”
The new controls will be effective from August 1, and companies exporting the metals must apply for licenses and provide information about the buyers and the intended use. The Ministry of Commerce adds that failure to comply with the new export controls “will constitute a violation of law and may, according to the relevant provisions, be punished by the competent departments.”
Gallium is vital for semiconductor manufacturing, and is also used in high-efficiency solar panels, automobile headlights, and LCD monitors. Germanium is also used in solar panels, and is used in similar high-efficiency panels, though less critical ones.
China dominates the production of both metals due to lower production costs rather than an abundance of the metals themselves. There may be potential for Western countries to extract these metals if China stops suppressing the prices, leading to an own-goal for China.
While China is not blocking the export of these metals, the broader tech industry may still be impacted. Stockpiles and reserves of important components exist in the chip manufacturing process, but ripple effects and price hikes on certain products are possible.
The tech war between China and the US and its allies continues to rage, with the gaming industry taking an early hit as the proposed ban on sales of advanced AI chips to Chinese businesses comes into effect. The dispute is unlikely to subside anytime soon, especially as the stakes continue to rise with the development of new and potentially game-changing technologies.
