China's Gallium And Germanium Bans Hit Their Trade War Mark


(MENAFN- Asia Times) China recently banned the export of the minerals gallium and germanium to the US amid growing tensions between the two countries on trade.

The minerals are of critical economic value because they are used in computer chips, in military technology such as night vision goggles and in the renewable energy industry, where they are important for manufacturing electric vehicles and solar cells. All of these areas are very sensitive sectors for the US and EU.

China has overwhelming market power over supply because it is the source of 98% of primary gallium and 91% of primary germanium. Primary refers to“raw” sources such as mineral ore. In several sectors where the minerals are used, there are no substitutes for them.

Gallium and germanium are present in very low concentrations as byproducts of major minerals – they're known as trace minerals. Germanium's primary source is the residue from zinc refineries and coal fly ash (a powdered residue produced when coal is burnt in power plants).

Gallium is mainly produced as a byproduct of bauxite ore (which is the main source for aluminium) as well as the processing stage to extract aluminium from bauxite.

The Chinese ban on exports of these minerals to the US closely followed Washington's third crackdown in three years on China's semiconductor (computer chip) industry. The US wants to curb exports of advanced chips to China that could be used in applications that threaten America's security.


China

Gallium melts at slightly above room temperature. Photo: E-Rik / Shutterstock

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Asia Times

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