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New export policy of China UPSC NOTE

 


  • On July 3, the Chinese Ministry of Commerce announced export controls on gallium and germanium, citing national security interests. 

  • The regulations will be enforced from August 1.

  • The curbs require export operators to obtain a specific license and provide detailed information about importers, end-users, and end use. 

  • Exporting without permission would result in administrative penalties and criminal responsibility.

  • Gallium is used in semiconductors, integrated circuits, mobile and satellite communications, LEDs, automotives, lighting, and sensors in avionic, space, and defense systems. 

  • China produces 80% of gallium worldwide.

  • China also produces 60% of the total global germanium, which is used in fiber-optic cables, infrared imaging devices, optical devices, and solar cells.

  • The European Commission and India consider gallium and germanium as critical raw materials for their economic development and national security.

  • The U.S. opposes China's export controls and plans to diversify supply chains. 

  • The European Commission has expressed concerns but doubts the move is related to security.

  • The U.S., Japan, and the Netherlands have implemented their own export control measures for national security reasons.

  • China denies targeting any specific country with its export measures and claims to implement fair and non-discriminatory export controls.

Impact on India

  • The impact on India is expected to be short-term, affecting immediate supply chains and chip-making plans. 

  • The long-term consequences depend on alternative supply sources, domestic semiconductor production capabilities, and strategic partnerships.

  • There is an opportunity for India to focus on waste recovery from zinc and alumina production to obtain critical minerals like germanium and gallium. 

  • Exploring substitutes such as indium and silicon is also suggested.

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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: New export policy of China UPSC NOTE
New export policy of China UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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