China has limited the West's ability to produce microchips and military optics - Media.

Image of a microchip factory in China
Image of a microchip factory in China

Western producers of microchips and military equipment are concerned about China's export control over critically important semiconductor materials such as germanium and gallium. Over the past year, prices for these minerals in Europe have almost doubled due to Beijing's restrictions on their supplies. These elements are essential for the production of microchips and military equipment. China currently produces the majority of the world's supply of gallium and germanium.

China's export control threatens the supply of important materials and could lead to a disruption in the production of modern microprocessors and other advanced technologies. Chinese restrictions are a response to similar U.S. restrictions on the export of microchips and equipment for their production. Control over the export of gallium and germanium creates additional stress for global supply chains and complicates the market situation.

Traders note that each batch of gallium and germanium now requires approval from the Chinese government, stretching the supply process to 30-80 days. This complicates the signing of long-term contracts and leads to uncertainty. China has also announced restrictions on the export of antimony, graphite, and technologies for the extraction of rare earth elements.

Analysts see such export control by China as an attempt to respond to the U.S. and ensure the country's own material supply for industrial modernization. Instead of depending on Western producers, China is trying to be self-sufficient in the production of advanced technologies and clean energy.

China's export control over critically important semiconductor materials hits supply chains and raises concerns about the reduction of Western production of advanced microchips and military optical equipment.
It is noted that Beijing's restrictions on the supply of germanium and gallium have led to almost double the price increase for these minerals in Europe over the past year. These elements are used in the production of semiconductors and components of military and communication equipment.
Beijing introduced restrictions last year, stating that they protect "national security and interests" in response to U.S. restrictions on the sale of modern microchips and equipment for the production of microchips.

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