So-called tech frictions between China, US only to harm global economy: Senior analyst

The recent hype of Western media outlets on China's export plunge to the United States of gallium and germanium, two critical chip-making minerals, are only meant to impose extra pressure on China, a senior analyst told China Daily on Tuesday.

Under the well-known backdrop of the US attempt to contain China's rise with export curbs on chips and investment restrictions in high-tech areas, China has no choice but to take some countermeasures, which are rational and in line with international practice, said Zhang Yansheng, chief researcher at the China Center for International Economic Exchanges.

Yet trade disputes and so-called tech frictions between the world's two largest economies are only to harm each other and the global economy, leaving countries like South Korea and Japan suffering greatly from plummeting chip sales to China, he added.

"It could only get worse if the US continues to contain China's sci-tech development under the excuse of national security," Zhang said.

If China wants to take tit-for-tat measures, export curbs on key minerals are handy, because China is a major supplier of key minerals including rare earth. But that will only cause greater harm to everyone, and China wants no trade war but only wants to focus on its own development, Zhang stressed.

"The two countries should sit down and solve their disputes through heart-to-heart negotiations, or at least try to avoid things from getting worse."

China started to impose export restrictions on industrial products and materials containing gallium and germanium from Aug 1, 2023.

The Ministry of Commerce said that the implementation of export controls was cautious and moderate and was not targeted at any specific country.

Decisions on whether to grant licenses would be made after comprehensive consideration of factors such as national security and interests, international obligations, ultimate users and end uses, the ministry said last year.

liuzhihua@chinadaily.com.cn