China hits back against US chip crackdown

China has banned exports to the United States of the critical minerals gallium, germanium and antimony, which have widespread military applications, escalating trade tensions the day after Washington’s latest crackdown on China’s chip sector.

The curbs, announced on Tuesday, strengthen enforcement of existing limits on critical minerals exports that Beijing began rolling out last year but apply only to the US market. It is the latest escalation of trade tensions between the world’s two largest economies before US President-elect Donald Trump takes office next month.

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A Chinese Ministry of Commerce directive on dual-use items, which have both military and civilian applications, cited national security concerns for the export ban. The order, which takes immediate effect, also requires stricter review of end use for graphite items shipped to the US.

“In principle, the export of gallium, germanium, antimony and superhard materials to the United States shall not be permitted,” the ministry said.