---
title: "China to restrict exports of chipmaking materials as US mulls new curbs"  
description: "China to restrict exports of some metals widely used in the semiconductor industry in response to the United States' recent announcement that it is co"  
author: "Yashna Bawa"  
published: 2023-07-04  
updated: 2023-07-04  
canonical: https://www.mindstick.com/news/3124/china-to-restrict-exports-of-chipmaking-materials-as-us-mulls-new-curbs  
category: "breaking news"  
tags: ["china sourcing agent"]  
reading_time: 2 minutes  

---

# China to restrict exports of chipmaking materials as US mulls new curbs

**Beijing, China** - China's Commerce Ministry announced on Monday that it will restrict exports of some metals widely used in the [semiconductor](https://www.mindstick.com/articles/333879/manufacturing-of-chips-in-the-semiconductor-market) industry. The move is seen as a response to the [United States](https://www.mindstick.com/news/2228/the-united-states-claims-seagate-broke-export-laws-by-selling-huawei-hard-drives)' [recent announcement](https://answers.mindstick.com/qa/38732/according-to-the-recent-announcement-by-the-union-home-ministry-what-percentage-of-reservation-will-be-accorded-to-women-at-the-constable-level-posts-in-both-crpf-and-cisf-with-immediate-effect) that it is considering new restrictions on the export of [high-tech microchips to China.](https://www.mindstick.com/news/3098/us-considering-new-restrictions-on-ai-chip-exports-to-china)

The Chinese government said that the export restrictions are necessary to protect [national security](https://answers.mindstick.com/qa/106107/how-does-the-national-security-council-function) and interests. The metals that will be affected by the restrictions include gallium and germanium, which are used in the [production of semiconductors.](https://www.mindstick.com/news/3094/india-is-next-key-location-for-semiconductor-manufacturers)

The announcement of the export restrictions comes as the United States and China are locked in a trade war. The [two countries](https://answers.mindstick.com/qa/41068/which-two-countries-did-the-newly-formed-united-states-have-problems-with) have imposed tariffs on billions of dollars of goods in each other's markets.

The [US government](https://answers.mindstick.com/qa/99487/why-is-incresing-poverty-in-the-us-is-the-biggest-issue-for-us-government) is concerned that China is using its access to rare earth elements and other strategic materials to build up its military and technological capabilities. The new restrictions on the export of microchips are seen as a way to prevent China from acquiring the technology it needs to develop its own chipmaking industry.

The Chinese government has said that it will not retaliate against the US's new restrictions on microchips. However, the export restrictions could further [escalate tensions](https://answers.mindstick.com/qa/114875/can-economic-sanctions-effectively-prevent-war-or-do-they-escalate-tensions-further) between the two countries.

## In other [news](https://www.mindstick.com/developersection/news):

- The export restrictions will take effect on August 1.
- The US government is also considering restrictions on the export of chipmaking equipment.
- The Chinese government has said that it will not retaliate against the US's new restrictions.

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Original Source: https://www.mindstick.com/news/3124/china-to-restrict-exports-of-chipmaking-materials-as-us-mulls-new-curbs

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