INSUBCONTINENT EXCLUSIVE:
NEW DELHI: In an escalation of its ongoing Cold War with the United States over access to critical technologies, China's commerce ministry
on Monday announced that it will exercise control over the exports of certain strategic minerals.China's export controls will come into
effect on August 1 and will be applicable to eight gallium-related products, including gallium antimonide, gallium arsenide, gallium metal,
gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide.Similarly, six germanium products will be
subjected to these controls, including germanium dioxide, germanium epitaxial growth substrate, germanium ingot, germanium metal, germanium
tetrachloride, and zinc germanium phosphide.Exporters will need to complete procedures to obtain export licenses, as stated by China's
commerce ministry in a released statement.Here is an FAQs on why China's ban on gallium and germanium are important and what it means for
IndiaWhy has China banned exports of strategic materials germanium and gallium?- To protect its national security and interests, as these
metals are essential for the development of advanced technologies in the fields of electronics, defence and renewable energy.- To retaliate
against the US and its allies, who have imposed restrictions and taken other strategic actions to curb China's access to semiconductors and
chipmaking technologies.- To send a warning message to the Biden administration that China holds significant cards when it comes to inputs
to the semiconductor, aerospace, and automobile industries, and can and will increasingly be willing to inflict pain on US companies.- To
gain more bargaining power in the global chip war and to assert its dominance in the high-tech sector.What are the implications of China's
export restrictions on germanium and gallium?China is a major producer of germanium and gallium, so the country's export restrictions could
have a significant impact on the global supply of these metals
This could lead to higher prices for germanium and gallium, and it could also make it more difficult for companies to obtain these metals
The export restrictions could also have a negative impact on the development of new high-tech technologies that rely on germanium and
gallium.What are germanium and gallium?Germanium and gallium are rare metals that are used in a variety of high-tech applications
Germanium is a silvery-white metal that is transparent to infrared radiation
It is used in fiber optic cables, night vision devices, and solar cells
Gallium is a silvery-gray metal that is liquid at room temperature
It is used in semiconductor devices, such as lasers and LEDs.Why are germanium and gallium considered strategic materials?Since these metals
are relatively rare, there is a risk of supply disruptions
In addition, the production of germanium and gallium requires specialized facilities, so there are a limited number of companies that can
produce these metals.What are the current market trends for these metals?The demand for germanium and gallium is expected to increase in the
coming years due to the growth of the semiconductor industry and the development of new technologies such as 5G, artificial intelligence,
quantum computing and renewable energy
The prices of these metals have also risen significantly in recent years due to supply constraints and geopolitical tensions.Where are
germanium and gallium found?Germanium is found in small amounts in zinc ores, coal fly ash, and some other minerals
Gallium is more abundant than germanium, but it is still considered a strategic material
It is found in trace amounts in bauxite and zinc ores, and it is produced as a byproduct of the aluminum and zinc industries.How much do
gallium and germanium cost presently?According to data from Refinitiv Eikon on the Shanghai Metal Exchange, the price of 99.99% pure gallium
in China rose by 5.97% during the previous session to reach 1,775 yuan ($245) per kilogram on Monday
This price surge represents the highest level observed since May 16.Similarly, the data from Refinitiv Eikon on the Shanghai Metal Exchange
indicated that the price of germanium ingot in China stood at 9,150 yuan ($1,264) per kilogram on Monday.Are there any substitutes?According
to the United States Geological Survey (USGS), silicon or indium can be utilized as replacements for gallium in arsenide wafers in specific
In certain electronic applications, silicon can serve as a more cost-effective alternative to germanium, as stated by the USGS.Infrared
application systems sometimes employ zinc selenide and germanium glass as substitutes for germanium metal
However, it is important to note that these alternatives may come at the cost of compromised performance, according to the USGS.Critical
minerals in IndiaIn line with the country's Atmanirbhar (self-reliance) roadmap and considering the requirements of sectors such as defence,
agriculture, energy, pharmaceuticals, and telecom, India has identified 30 critical minerals
The ministry of mines unveiled the first-ever report titled 'Critical Minerals for India' in the last week of June."As an emerging global
economic powerhouse, it is essential to understand and harness the potential of critical minerals to fuel the country's growth,
competitiveness, and sustainable development," Union minister Pralhad Joshi said in his foreword of the report
The report emphasizes the necessity to identify and develop value chains for these critical minerals within the country.The report
emphasizes the necessity to identify and develop value chains for these critical minerals within the country.The identified critical
minerals are: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium,
Nickel, PGE (Platinum Group Elements), Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium,
Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium
These minerals are expected to provide a guiding framework for policy formulation, strategic planning, and investment decisions within the
mining sector.Gallium and germanium's availability in IndiaAccording to the ministry's report, germanium is not available in India
India is 100% dependent on import to meet its germanium requirements
China, South Africa, Australia, France and the US are leading import sources for germanium.Meanwhile, gallium is recovered as a by-product
Two plants, namely, HINDALCO at Renukoot, Uttar Pradesh and NALCO Damanjodi alumina refinery, Odisha, had recovered gallium in the past, the
ministry said in its report.How will India be impacted from China's curbs?Since, both germanium and gallium are not found in abundance in
India, India is likely to be directly or indirectly impacted by China's export restrictions on these two minerals.A 'warning' to US, allies
According to an editorial published by the Chinese state media tabloid Global Times on Tuesday, China's decision to impose export
restrictions on critical minerals used in the production of semiconductors and electric vehicles is a clear message that China will not
passively accept being excluded from the global chip supply chain
The editorial argued that these controls on gallium and germanium products serve as a practical way for China to communicate to the United
States and its allies that their attempts to limit China's access to advanced technology are a miscalculation.Furthermore, the editorial
highlights that China has, for many years, exploited its own reserves of rare earth resources, often at the expense of the environment, to
meet the demands of the global semiconductor industry
In light of this, the editorial questioned why China should not make necessary adjustments and exercise caution in depleting its limited
reserves of rare earth resources to support those who have aligned themselves with the US-led "decoupling" agenda.The editorial concluded by
stating that there is no reason for China to continue depleting its own mineral resources only to be hindered in its pursuit of
technological development
It suggests that China should consider a more strategic approach to ensure its resources are not exhausted while facing restrictions on
technological advancements.(With inputs from agencies)
