Yellen 'concerned' by China's export controls on critical minerals
2 Min Read
Beijing earlier announced that starting August 1, purchasers of two chipmaking metals, gallium, and germanium, will need to apply for export licenses, drawing concern from Washington.
-
Federal Chair Janet Yellen in the Fox Washington Bureau in Washington on August 14, 2019. (AP)
According to Treasury Secretary Janet Yellen, the US is worried about recent Chinese export limits on rare earth elements used in microchips.
China stated earlier this week that from August 1, purchasers of two chipmaking metals, gallium, and germanium, will need to apply for export licenses. Beijing's action has been interpreted as revenge for Western restrictions on China's access to sophisticated chip manufacturing equipment.
China's Ambassador to the United States, Xie Feng, said China hopes on Wednesday that Yellen's visit would create a common ground for Beijing and Washington to manage their differences and resolve their disputes.
Xie expressed a desire that both countries would "meet each other halfway," boost dialogue and cooperation, and implement the crucial consensus between the country's leaders.
The Treasury Secretary is in Beijing from July 6-9; her Department said the objective of the relationship is "to responsibly manage our relationship [Sino-American relations], communicate directly about areas of concern, and work together to address global challenges."
The Secretary took part in a discussion hosted by the American Chamber of Commerce with more than 10 businesses operating in China.
During the meeting, Yellen expressed that she is "concerned about new export controls recently announced by China on two critical minerals used in technologies like semiconductors. We are still evaluating the impact of these actions, but they remind us of the importance of building resilient and diversified supply chains."
One of China's main concerns today is the US chip war declared on the Asian giant, which saw Washington imposing restrictions on semiconductors and related technology to Chinese firms, including on non-American companies.
The Wall Street Journal reported last month that the United States is considering introducing more restrictions on chip exports to China, claiming concerns over the possibility of its use in the military and cyber industry.
Biden pledged late last month to increase US allies' engagement in the anti-China chip campaign.
