China's Metal Export Restrictions Send Ripples Through Chip Sector
🇨🇳 China's Metal Export Restrictions Send Ripples Through Chip Sector.
The recent announcement by China to impose export curbs on metals used in chipmaking has triggered concerns and evaluations among trade officials. South Korea and Japan are assessing the impact of China's decision to control the exports of gallium and germanium, essential metals for chip manufacturing, electric vehicles, and telecom products. While South Korea's commerce ministry stated that the measure could potentially expand to cover other items, Japan kept the possibility of action at the World Trade Organization opens to oppose any violation of international rules. The move is expected to have a short-term impact on prices and prompt countries like Taiwan, South Korea, and Japan to reduce their reliance on China for critical materials. Germany, Europe's largest importer of these metals, highlighted the vulnerability of Europe's dependency on China. China’s acquisition of these metals is significant, as the country dominates the production of many raw materials crucial to modern technology and infrastructure.
Oil traders have cut their net long positions in Brent and WTI due to concerns over China's economy.