Beijing jabs in US-China tech fight with chip material export curbs

China announced abrupt controls on exports of some gallium and germanium products, effective from August 1, which in turn has ramped up a trade war with the United States. The same could potentially cause more disruption to global supply chains, reported Reuters.

“Chinese industry players also fear that curbs on rare earth exports could follow,” the news added.

The news quotes Peter Arkell, chairman of the Global Mining Association of China, saying "China has hit the American trade restrictions where it hurts."

The Commerce Ministry will meet with major producers of the metals on Thursday to discuss the export restrictions, four people familiar with the matter told Reuters.

China’s latest retaliation is in reaction to the US curb on AI chips’ shipments to Beijing. On the same line is the news from the Wall Street Journal (WSJ) that the Biden administration is preparing to restrict Chinese companies’ access to U.S. cloud-computing services.

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AUD/USD grinds higher

The news fails to gain any major immediate directions amid the US holiday but can weigh on the sentiment during the full markets.

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