U.S. Launches Third Crackdown, Restricts 136 Chinese Firms; China Bans Export of Gallium, Germanium

Dec 3, 2024, 11:47 AM

The United States has intensified its chip trade restrictions on China, launching its third major crackdown in three years by introducing new export controls that impact 136 Chinese companies involved in semiconductor manufacturing. The Biden administration aims to curb China's advancements in artificial intelligence, military technology, and advanced chip production by limiting access to critical components, chipmaking equipment, high-bandwidth memory, and software tools. A total of 136 Chinese entities, including key firms such as Naura Technology, Piotech, Kingstone, and Huawei-linked companies, have been added to the Entity List, effectively restricting their ability to acquire U.S.-made technology. U.S. Commerce Secretary Gina Raimondo described the rules as "groundbreaking and sweeping." In response, China's Ministry of Commerce announced it will impose export restrictions on key minerals essential for semiconductor manufacturing and military applications, including gallium, germanium, and antimony. Beijing's move is seen as a direct retaliation to the U.S. measures and signifies an escalation in the ongoing technology trade tensions between the world's two largest economies. The export ban highlights China’s willingness to engage in supply chain actions by blocking critical materials used in chipmaking and other high-tech industries.