Tech Diplomacy Now: China Announces Export Restrictions on Critical Metals
In a move intended as retaliation against American, Dutch, and Japanese semiconductor restrictions, Beijing announced new export controls on eight gallium-related and six germanium-related products.
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Top News of the Week – China Announces Export Restrictions on Critical Metals
In a move intended as retaliation against American, Dutch, and Japanese semiconductor restrictions, Beijing announced new export controls on eight gallium-related and six germanium-related products. For the most part, these are used in the semiconductor industry and with LED lights and the PRC commerce ministry emphasized that these products would need export licenses after August 1.
The PRC refines most of the world’s supply of these products, as they are the byproducts of aluminum smelting, coal ash, and other industrial processes. In terms of germanium, the PRC produces about two-thirds of the world’s supply and over 85% of the world’s gallium products.
While the price of gallium and germanium increased after the announcement, it remains to be seen whether this action can impose any more than some limited disruptions given that relatively small amounts are needed, recycling techniques exist, and additional production capacity can be brought online fairly quickly, if Beijing restricts the export of their gallium and germanium products.
At first blush, gallium and germanium are not particularly strong chokepoints for the PRC to exert leverage over the United States or other countries. This action is likely to spur further efforts in Japan, Korea, North America, and Europe to reduce their supply chain vulnerabilities with the PRC.
More background:
China Controls Minerals That Run the World—and It Just Fired a Warning Shot at U.S. – WSJ, July 7, 2023
China’s Gallium and Germanium Export Controls – Asianometry, July 9, 2023
German industry urges reduced dependency after China export controls – Reuters, July 4, 2023
Dutch: China's export curb on chip metals requires EU response – Nikkei Asia, July 5, 2023
Announcements
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Latest News
Keeping up pressure, China sends warships and fighter jets near Taiwan during Yellen’s Beijing visit – Associated Press, July 7, 2023
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On security and diplomacy, Abe’s legacy to be felt far into the future – Japan Times, July 9, 2023
Technology Strategy and Policy
EU Seals New Transatlantic Data-Transfer Pact with US in Third Attempt – Bloomberg, July 10, 2023
Selling Your Cellphone Location Data Might Soon Be Banned in U.S. for First Time – WSJ, July 10, 2023
China’s WeRide secures self-driving vehicle license from UAE – TechCrunch, July 4, 2023
State Dept. cancels Facebook meetings after judge’s ‘censorship’ ruling – Washington Post, July 5, 2023
Artificial Intelligence
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OpenAI makes GPT-4 generally available – TechCrunch, July 6, 2023
Huawei unveils latest AI model as ChatGPT boom rolls on – Nikkei Asia, July 7, 2023
The US Military Is Taking Generative AI Out for a Spin – Bloomberg, July 5, 2023
Telecommunications Networks and Infrastructure
Musk Ultimatum to Taiwan Imperils Its Push to War-Proof Internet – Bloomberg, July 6, 2023
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NBN aims to match Elon Musk’s Starlink but may have to write off $620m – Australian Financial Review, July 6, 2023
China seeks leg up in 6G standards race with faster wireless tech – Nikkei Asia, June 30, 2023
Critical Minerals
What Really Happened the Night the Nickel Market Broke – Bloomberg, June 21, 2023
The world needs more battery metals. Time to mine the seabed – The Economist, July 6, 2023
China Set to Boost State Cobalt Reserves After Tumble in Prices – Bloomberg, July 4, 2023
Synthetic Biology
China Official Meets with Foreign Drugmakers to Boost Confidence – Bloomberg, July 5, 2023
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Sky-High Sustainability: SynBioBlox's Route to Cleaner Aviation Fuel – SynBioBeta, July 3, 2023
Quantum
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Inside NIST’s effort to lay the groundwork for a functional quantum computer – NextGov, July 7, 2023
Advanced Aerospace Technology
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HawkEye 360 satellites to monitor illegal fishing in Pacific Islands – SpaceNews, July 6, 2023
Semiconductors and Microelectronics
One Reason the U.S. Can’t Quit China? Chips. – NYTs, July 8, 2023
India aims to produce first semiconductors within 18 months – Financial Times, July 4, 2023
Foxconn dumps $19.5 billion Vedanta chip plan in blow to India – Reuters, July 10, 2023
Japan’s Plan to Become a Chipmaking Champ Hinges on This Football-Loving Engineer – WSJ, July 6, 2023
Energy and Climate
Microvast Nixes Battery Plant After US Pulls Loan Over Company’s China Ties – Bloomberg, July 5, 2023
The EU’s industrial policy on batteries – New strategic impetus needed – European Court of Auditors, June 19, 2023
China's CATL finds battery research help in small east German town – Nikkei Asia, July 5, 2023
How China Came to Dominate the World’s Largest Nickel Source for Electric Cars – WSJ, July 5, 2023
Biden’s hydrogen bombshell leaves Europe in the dust – Politico, July 5, 2023
Opinion and Commentary
This is how AI will transform the way science gets done – Eric Schmidt, MIT Technology Review, July 5, 2023
Rare metals move by China shows need to find common ground – SCMP, July 7, 2023
Technological cooperation is cementing U.S.-India security ties – Ved Shinde, Nikkei Asia, July 4, 2023
The High Price of Dollar Dominance – Michael Pettis, Foreign Affairs, June 30, 2023
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