China's critical minerals embargo is even tougher than expected

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Economic Times Logo Economic Times 4d 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.

These restrictions have included transshipment bans.On Dec.2, Washington added more than 100 Chinese companies to a restricted trade list and banned the sale to China of some of the fastest semiconductors and the equipment to make them.

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.