China Strikes Back in Chips War by Banning Key Material Exports to US [Video]

China has struck back at U.S. trade restrictions by banning exports of gallium, germanium, and other high-tech materials essential for advanced manufacturing and military technology.

The move, announced Tuesday by Beijing‘s Commerce Ministry, could propel the economic rivalry between the two powers and their respective supply chains.

China has explicitly decided to target crucial materials for the production semiconductors, mobile devices, solar panels, and defense systems.

Beijing’s action follows Washington‘s expansion of its “entity list,” which added 140 Chinese companies subjected to strict export controls on semiconductor-making equipment and advanced chip technology.

The U.S. claims these measures are necessary for national security.

Lin Jian, China’s Foreign Ministry spokesperson said they firmly oppose “the U.S. overstretching the concept of national security” in order to abuse export control measures and unilateral sanctions, which they called “legal.”