[Daily Callar] China’s announcement that it will implement export controls on two specific minerals could have drastic and far reaching consequences for American consumers as geopolitical tension between Washington and Beijing mounts.
Chinese officials announced export limits on germanium and gallium Monday after U.S. officials opted in October 2022 to impose restrictions on the export of advanced computer chips to China. The Chinese export limits could spike prices for consumers in the U.S. as the two minerals are essential for manufacturing high-speed computer chips, military equipment, solar panels, fiber optic cables and other key technologies, according to CNBC.
The two minerals are essential to almost all modern technology that utilizes optical or radio components, and many of these devices would not be able to operate without the minerals, according to Electropages. A substantial reduction in the available global supply of the minerals could make the goods that depend on their availability more expensive for consumers.
Fears are mounting that China may escalate its export controls to include other strategically valuable rare earth minerals as the relationship between Beijing and Washington continues to sour, according to Forbes. Manufacturers commonly use other strategically important rare earth minerals to produce smartphones, electric vehicles and wind turbines, according to Reuters. |