China limits US export of chipmaking materials following sanctions

Illustration by Alex Castro / The Verge

China has imposed new limits on the sale of chip-making materials to the US, a move that comes just one day after the Biden Administration announced sanctions that will make it harder for Chinese companies to produce advanced semiconductors, as reported earlier by CNN.

On Tuesday, the Chinese Ministry of Commerce said it will no longer allow the sale of gallium, germanium, antimony, and other key minerals with potential military applications to the US to safeguard national security. The country will also closely scrutinize the export of graphite.

The US Department of Commerce introduced new rules on Monday to “further impair” China’s ability to produce semiconductors for AI and weapons systems. The rules put new limitations on the equipment and software used to manufacture semiconductors, along with high-bandwidth memory chips. It also began barring exports to 140 new Chinese companies.

“This action is the culmination of the Biden-Harris Administration’s targeted approach, in concert with our allies and partners, to impair the PRC’s ability to indigenize the production of advanced technologies that pose a risk to our national security,” US Secretary of Commerce Gina Raimondo said in a statement.

Over the past several months, China has started tightening control over its supply of rare materials. It started limiting the export of antimony — a mineral used for chipmaking and to create military equipment — in September and later began requiring exporters to explain in detail how they’ll be used in Western supply chains, according to The New York Times.

Things could get even more heated in the coming months, with President-Elect Donald Trump vowing to impose additional tariffs on Chinese goods.