China limits gallium and germanium exports

 

China has put export limits on gallium and germanium products with widespread applications in semiconductors and electric vehicles in reaction to U.S. efforts to impede their technological advancement, which might disrupt the global supply chain.  The export restrictions can increase prices and force semiconductor manufacturers to look into alternate materials. China's move may impact leading importers of gallium and germanium products, including Japan, Germany, France, and the U.S. Given that China is the world's top producer of rare earth metals, industry experts have expressed worries about the likelihood of further limitations on rare earth exports. To lessen the effects of the limitations, businesses are scrambling to acquire supplies and submit applications for export licenses. Nyrstar, an international miner, announced that it might produce germanium and gallium in Australia, Europe, and the U.S.; this restriction positively affected Teck Resources shares (1% up), the largest North American germanium producer. Germanium is also utilized in solar cells, fiber optic cables, and infrared technology, and China produces 60% of the world's germanium mining.