China To Restrict Germanium and Gallium Exports As US Plans Restrictions On Chinese Companies Access to Cloud Computing Services

The battle for technological supremacy is heating up as the US, and China try to outdo each other. The latest salvo comes on China issuing restrictions on the exports of gallium and germanium. Starting August 1, Chinese companies will have to seek authorization to ship the two compounds by stipulating the importers and how they intend to use them.

China Metal Ban

Gallium is one of the soft silver metals used to produce compound semiconductor wafers for electronic circuits and light-emitting diodes. On the other hand, Germanium is used to manufacture fibre optics to transfer data and information.

The move is part of escalating tensions between Beijing and the USA as the two try to restrict access to crucial metals billed to be part of national security. The ban comes just days before US treasury Janet Yellen visits Beijing in a move that is likely to have little impact in easing tensions between the two nations.

While China insists the new policies do not target specific nations, its timing is highly suspicious. It’s been interpreted as a retaliatory move after the US issuing bans and restrictions on Chinese companies access to some US products and technologies. Part of the measure targets access to semiconductor chips crucial to the next industrial revolution.

US Cloud Computing Ban

Additionally, reports indicate that the Biden administration is planning to curb Chinese companies access to US cloud computing services. The new measure will mostly affect Amazon and Microsoft, some of the big players in providing cloud services. The tech giants will have to seek US government authorization to provide cloud computing services that want to leverage artificial intelligence technologies.

Reports indicate that the Department of Commerce is on course to implement the curbs on cloud computing technologies and services as part of the semiconductor export control policy. The curbs come on Beijing also imposed curbs on the export of gallium and Germanium, commonly used in producing semiconductors.

US Social network Ban

Separately a US Federal Judge has banned some government agencies and top government officials from communicating with social media networks on certain content. The restriction comes from a complaint raised by some GOP states on how the US government used social networks to combat disinformation at the height of COVID-19.

The new order mostly affects the Department of Health and Human Services, the National Institute of Allergy and Infectious Diseases, and the US Centers for Disease Control and Prevention. However, government agencies can still communicate with social networks to curb illegal activities or address security threats.

This article by Money News National is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Money News National has no position in the stocks mentioned. Thank you for reading.


This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.


Please enter your comment!
Please enter your name here