China's critical minerals embargo is even tougher than expected

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Economic Times Logo Economic Times 1d ago

China's critical minerals embargo is even tougher than expected - Economic Times

Quick Summary:

The ban by Beijing threatens to divide global supply chains further, by forcing companies to choose whether products with certain materials and components can be supplied only to the U.S.market or only to the Chinese market.

But Chinese companies are still struggling to make the fastest semiconductors, and the Biden administration has restricted the export to China of the fastest 5% or so of the world's semiconductors, which are used in military applications as well as in artificial intelligence.

In addition to the four minerals, the export embargo also includes "superhard materials," a category of chemical compounds for which China is a leading producer, often using minerals mined mainly within its borders.