IOG Economic Intelligence Report (Vol. 2 No.13)
China Curbs: On July 3, the Chinese government announced that it would impose export controls on two critical minerals , gallium and germanium, starting on August 1, under a December 2020 law designed to prohibit the export of advanced technologies with military applications. Exporters will need to apply for a license from the Chinese Ministry of Commerce if they want to export these minerals from China. These controls will affect worldwide production of semiconductors, defense equipment, and communications equipment around the world since the two minerals are largely sourced from China (94 percent of gallium and 83 percent of germanium). The restrictions are widely believed to be in retaliation for export controls imposed by the United States on advanced semiconductor production equipment in October 2022.