Type to search

China Blocked Exports of Two Chipmaking Metals in August

China exported no wrought germanium products last month, compared to 8.63 metric tons in July when volumes doubled from June as foreign buyers rushed to lock in supply ahead of export curbs

China exported no gallium or germanium in August, customs data showed this week.
Carmakers in early stages of designing their next generation EV models could opt for silicon carbide on their chips, instead of the better performing gallium nitride, rather than risk a new supply chain threat, one analyst has said. This metals table shows gallium and germanium with a Chinese flag (Reuters).


China ended all exports of two chipmaking metals – germanium and gallium – in August,customs data has revealed.

The move by Beijing was a response to its escalating ‘chip war’ with the United States, which imposed export controls late last year that denied China access to advanced chips.

China exported no wrought germanium products last month, compared to 8.63 metric tons in July when volumes more than doubled from June as overseas buyers rushed to lock in supply ahead of the curbs.

There were also no exports of wrought gallium products in August. In July, exports were 5.15 tons and 7.67 tons in the same month in 2022, the data showed.


ALSO SEE: China Reviewing Quant Trading Amid Anger Over Short Selling


Exporters now require permits

In July, China announced restrictions on the export of eight gallium and six germanium products starting August 1.

Under the new rules, exporters of germanium and gallium products now need to obtain an export licence for dual-use items and technologies, meaning those with potential military and civilian applications.

Permit applications take around 45 working days to process, said a Chinese germanium trader and a germanium producer, who declined to be named because of the sensitivity of the matter.

“We did not ship any volumes abroad last month as we are still waiting for a permit,” the trader added.

Under the customs code for “germanium oxides and zirconium dioxide”, the data showed exports of 1,034 tons in August. It was not possible to verify if the shipments were made up of only zirconium dioxide or also included some germanium oxide.

Chinese spot gallium prices slid last month as stocks piled up in the domestic market due to the export controls and subdued demand.

The spot price of gallium metal fell by 9% on the month to 1,655 yuan per kilogram on August 31, according to data from Shanghai Metals Market (SMM).

The spot price of germanium ingot, however, climbed by 1% during the month to 9,700 yuan per kilogram at the end of August, SMM data showed, helped by tightening supply.

China’s exports of wrought germanium totaled 36.48 tons in the first eight months of 2023, up 58% on the year while shipments of wrought gallium fell 58% on the year to 22.72 tons over the January-August period.


  • Reuters with additional editing by Jim Pollard




China Metal Curbs, Rare Earths Risks Fuel Hunt For Safe Sources


World’s Biggest Gallium Buyer Doubts Long China Export Ban


China’s Gallium Curbs a Headache for EV Carmakers


China Move to Block Chipmaking Metals Spurs Supply Fears


Dutch Restrict Chip Exports Amid US Push to Tighten China Curbs


China Curbs Mean Permanent Loss of Opportunities for US: Nvidia


Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.


AF China Bond