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Retaliation for US Semiconductor Sanctions? China Controls Exports of Dual-Use Items Like Gallium to the US

US Dual-Use Export Ban to the US Announced One Day After US Sanctions Announcement

China has decided to impose a complete ban on exports of key materials used in advanced industries, such as gallium and germanium, to the United States. This move is seen as a countermeasure following the U.S. announcement of additional semiconductor export restrictions on China the previous day.


On the 3rd (local time), China's Ministry of Commerce stated, "In accordance with the Export Control Law and related regulations, we have decided to strengthen export controls on dual-use items to the United States to protect national security and interests, fulfill international obligations such as non-proliferation."


China defines dual-use items as materials used for both civilian and military purposes or those that help enhance military potential, and has significantly tightened regulations starting this month.


According to the Ministry of Commerce, under this measure, dual-use items such as gallium, germanium, antimony, and superhard materials will, in principle, be blocked from export to the United States.


Additionally, for dual-use items related to graphite, exports to the U.S. will be subject to strict review of the end users and usage.


Exports of dual-use items to U.S. military users or for military purposes are also prohibited. This measure takes effect immediately.


The Ministry of Commerce stated, "Any organizations or individuals from any country or region that violate related regulations and export or provide dual-use items originating from China to the United States will bear legal responsibility according to the law."


This measure is interpreted as a retaliatory action against the U.S. semiconductor export restrictions on China.


Regarding the background of the export controls, China's Ministry of Commerce explained, "In recent years, the United States has excessively expanded the concept of national security, politicized and weaponized economic, trade, and science and technology issues."


It added, "The U.S. has abused export control measures, unjustly restricted exports of related products to China, and included many Chinese companies in sanction lists."


Furthermore, it claimed, "The sanction lists aimed at suppression and blockade have seriously undermined international trade rules, severely infringed upon the legitimate rights and interests of enterprises, and seriously damaged the stability of global industries and supply chains."


However, "China is willing to strengthen dialogue with relevant countries and regions in the field of export control and jointly promote the safety and stability of the global industrial chain and supply chain," it said.


On the 2nd (local time), the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced through the Federal Register that certain high-bandwidth memory (HBM) products will be added to the list of export-controlled items.


HBM is a high-performance memory made by stacking multiple DRAMs vertically and is necessary for operating artificial intelligence (AI) accelerators.


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