The European Commission is "concerned" about China's export restrictions on gallium and germanium, two rare metals and critical raw materials (CRMs) that are indispensable for the production of advanced chips.
China announced on Monday that exporters of items containing gallium or germanium will have to obtain a special export licence from August so they can serve both civilian and military purposes. The Chinese authorities said the measure is necessary to "safeguard security and national interests."
However, the Commission is "concerned" that the Chinese export restrictions have nothing to do with international peace or stability or non-proliferation commitments, a spokesperson said on Tuesday.
"We call on China to adopt an approach where restrictions and controls are based on clear security considerations in line with World Trade Organisation (WTO) rules," she said, not ruling out action by the Commission in the WTO framework.
Growing rivalry
Meanwhile, the Commission is working on a detailed analysis of export restrictions and their potential impact on international supply chains and European industry.
European legislation already identifies both metals as critical and strategic as they are key to the green and digital transition, and imports are dependent on one supplier.
China accounts for about 80% of the global production of gallium, which is used in integrated circuits, LEDs and solar panels, among others. The country also dominates the production of germanium, which is used in the production of fibre-optic cables and infrared applications.
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China's announcement comes against the backdrop of ongoing technological rivalry with the United States, as the US already restricted Chinese companies' access to American technology and recently strengthened restrictions on semiconductor exports to China.
In March, the Commission presented new legislation to reduce dependence on third countries for access to these critical raw materials. By 2030, the European Union should be no more than 65% dependent on a third country like China for imports of 18 strategic raw materials.
