China Retaliates Over New US Chip Restrictions

China banned exports of minerals and metals used in semiconductor manufacturing and military applications to the United States on Tuesday, escalating tensions in the growing technology trade war between the world's two largest economies.

The commerce ministry halted shipments of gallium, germanium, antimony and related compounds, citing national security concerns. These materials are crucial components in advanced electronics and military hardware, with China controlling 98% of global gallium production and 60% of germanium output, according to U.S. Geological Survey data. The move comes in direct response to Washington's new restrictions on semiconductor exports to China, including controls on high-bandwidth memory chips used in AI systems and limits on manufacturing equipment sales.

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