Xi's Metal Curbs Risk Backfiring as G-7 Explores Alternatives to China
🇨🇳 Xi's Metal Curbs Risk Backfiring as G-7 Explores Alternatives to China.
China's recent decision to impose export controls on gallium and germanium, key metals used in advanced technologies, demonstrates the country's ability to retaliate against the US, Japan, and Europe's efforts to limit China's access to technology. However, this move also presents a risk of backfiring. By potentially restricting shipments and cutting off supply to other nations, China may inadvertently accelerate efforts by those countries to reduce their reliance on China and seek alternative sources. The measure highlights the dilemma faced by President Xi Jinping as he tries to counter US efforts to limit China's access to crucial chips while avoiding actions that would fuel derisking and supply chain diversification. The ongoing ideological struggle between the US and China is currently prioritized over globalization, emphasizing competition rather than collaboration between the two countries.
Oil traders have cut their net long positions in Brent and WTI due to concerns over China's economy.