Beijing: China has stopped the export of two rare minerals important in making semiconductors. In August, information surfaced that China has completely stopped the export of ‘gallium’ and ‘germanium’. Due to this decision of China, there is a fear that semiconductor manufacturing in the West will be affected. Besides, this decision of China will be a part of the ‘tech war’ against the US. However, analysts have warned that it will not benefit China in the long run.

In July, China announced that a special license would be required to export rare minerals in the future. After this, in July, Chinese companies exported 5.15 tonnes of gallium and 8.1 tonnes of germanium. However, the Chinese government announced zero exports of these two rare minerals in August. After China‘s Commerce Ministry was asked questions on this issue, it responded that the process to grant licenses to the companies had started.

According to information from international groups, 80 per cent of the world’s gallium is produced in China. All the more, China’s share in the production of germanium is 60 per cent. Gallium is used in making semiconductors, LEDs and solar panels. At the same time, germanium is used to make microprocessors and night vision goggles required for the army. These minerals are not available directly in the mine but are available through combining other minerals and compounds. These minerals, ‘gallium’ and ‘germanium’, are also mentioned as ‘Minor Metals’.

There are indications that semiconductor production in Western countries is affected due to the ban on exports of both rare minerals. The US Defense Department has disclosed that germanium is sufficient in its reserves. However, it has not shared information about gallium reserves. Analysts have claimed that prices of both minerals and semiconductors will rise in the next few months due to China’s zero exports.

However, China will get short-term benefits after stopping the export of rare minerals. If you think about it for a long time, analysts and experts have indicated that this decision will only cause harm to China. Even in the last decade, China has banned the export of rare minerals for some time after warning of a ban on its export. However, later, analysts drew attention to China’s dominance in this sector, which is diminishing globally. At one time, China’s share in rare earth minerals was 95 per cent. At present, information has come to light that this share has reduced to 75 per cent.