China Says It Has Informed U.S., Europe About Export Controls Ahead of Time

tendata blogTrade Trends News

ten data blog07-07-2023

· China has informed the United States and Europe in advance of this week's export ban, the Ministry of Commerce said Thursday.

· Commerce Ministry spokeswoman Shu Jue Ting said China did so through "export control dialogue channels".

· She said the ministry has not received any applications for export licenses.

china export,china export control,china export restriction

China has notified the United States and Europe in advance of this week's export controls, the Commerce Ministry said Thursday.

Commerce Ministry spokeswoman Shu Jue Ting said in Mandarin that China did so through the "export control dialogue channel".

She said China's restrictions do not target any particular country and reiterated that its goal is to protect national security.

China's Ministry of Commerce announced Monday that it will restrict exports of gallium and germanium, two metals used in semiconductor manufacturing, starting Aug. 1. That means Chinese companies will need to apply for a license to export the metals. China produces most of the world's gallium and germanium, which are not naturally occurring but are produced by refining other metals.

Spokeswoman Shu said the ministry has not yet received any applications for export licenses, noting that the rule will not take effect until Aug. 1.

She told reporters more than once that the export restrictions are not a complete ban on exports and that applications that meet the requirements will only be approved. Shu did not give specific details.

In a statement to CNBC, a European Commission spokesman said China informed the Commission on Monday of the upcoming export controls.

The spokesman said, "The Commission is concerned that these export restrictions are not related to the need to protect international peace and stability or to China's compliance with its non-proliferation obligations under international treaties." He noted that the Commission is conducting an analysis of the potential impact of these restrictions on the global supply chain.

When asked for comment, the U.S. Treasury Department referred CNBC to the U.S. Department of Commerce. The U.S. Department of Commerce and the Office of the U.S. Trade Representative did not immediately respond to CNBC's request for comment.

Gabriel Wildau, managing director of consulting firm Teneo, said in a report Wednesday that "Beijing's new licensing regime follows a trilateral agreement earlier this year to harmonize chip export controls, and is a warning to the U.S., Japan and the Netherlands ."

"Japan, Germany and the Netherlands are the world's largest importers of Chinese gallium by volume, while Japan, France, Germany and the U.S. lead in germanium imports."

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