China’s restrictions on exports of Gallium and Germanium enter into force today, Aug. 1. From now on, they will be subordinated to government permission. This is a retaliation against US sanctions and is a Damocles’s sword on the entire world production. 94 percent of Gallium and 83 percent of Germanium worldwide is produced in China. Gallium is indispensable in automotive, satellite, military radar, and smartphone technologies.
This means that if the Chinese government decides to turn the tap off, western industries are in trouble. Beijing won’t automatically do it and possibly is expecting that western governments will come under pressure from producers and loosen sanctions.
