Brussels: The European Commission has expressed its concerns regarding China's recent decision to impose export controls on two rare metals that are essential for semiconductor production. This move comes amidst an escalating technological rivalry between the United States and China, and the EU is closely monitoring the situation.

China's trade ministry announced that starting from August 1, exports of gallium and germanium would require a license, citing "security and national interests" as the reason. However, the European Commission spokesperson, Sonya Gospodinova, stated that the EU executive does not believe these new restrictions are necessary to protect global peace and stability. The Commission has called on China to align its export restrictions with clear security considerations in accordance with World Trade Organization (WTO) rules.

China currently produces 80 percent of the world's gallium and germanium supplies, as reported by the European Commission in 2020. The EU relies on China for 27 percent of its gallium and 17 percent of its germanium imports. Gallium is used in integrated circuits, LEDs, and solar panels, while germanium is found in optical fibers and infrared camera lenses.

These export restrictions imposed by Beijing further heighten international tensions surrounding semiconductor production and the technological competition between China and the United States. While the EU has not taken the same firm stance as the US, it is actively working towards reducing its dependency on critical materials sourced from China. The European Commission is currently conducting a thorough analysis of the announced measures and their potential impact on global supply chains and the European industry.