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Japan-Expresses-Concern-Over-China's-Export-Controls-on-Chip-Materials

Japan Expresses Concern Over China’s Export Controls on Chip Materials

02/21/2025
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Japan Expresses Concern Over China’s Export Controls on Chip Materials

by Giezel Garcia
02/21/2025
in Export Controls

Japanese officials and industry executives have raised concerns over China’s recent expansion of export controls on semiconductor raw materials, citing potential disruptions to global electronics supply chains.

In December, Beijing imposed stricter restrictions on the export of gallium, germanium, antimony, and other specialized materials, limiting their sale to the United States and requiring additional oversight for exports to certain entities. China’s new regulations also extend to products containing gallium, which may impact manufacturers that export goods incorporating the material.

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Potential Impact on Japanese Industries

Japan is one of the world’s largest consumers of gallium, germanium, and graphite, which are essential in manufacturing semiconductors, electric vehicle batteries, and other advanced technologies. Industry representatives have noted that compliance with the new regulations could be challenging, as tracking the final destination of gallium-containing products through complex supply chains is difficult.

Japan’s imports of gallium from China had already decreased by 85% in the year following China’s initial export restrictions introduced in August 2023, according to Japanese trade statistics. The latest measures could further affect industries reliant on these materials.

Additionally, China introduced new restrictions on tungsten and indium exports this month, following the U.S. government’s decision to impose additional tariffs on Chinese goods.

Uncertainty Around Enforcement and Compliance

Chinese authorities have stated that the country’s export control policies are in line with international standards and have expressed willingness to engage in dialogue to support the stability of global supply chains. However, industry experts remain uncertain about how strictly China will enforce the new measures, noting that enforcement may be influenced by broader diplomatic relations.

The price of gallium outside China has risen by 23% since December and has more than doubled since mid-2023, according to market data from pricing agency Argus.

As semiconductor materials play a critical role in high-tech industries, both Japanese officials and companies continue to monitor the evolving regulatory landscape and its potential impact on international trade.

Stay updated with the latest in supply chain news at The Supply Chain Report. For free international trade tools, visit ADAMftd.com.

#Japan #China #Semiconductors #TradeTensions #ExportControls #ChipIndustry #Geopolitics

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