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China, U.S. standoff: Beijing bans exports of rare earth tech, Washington surveys legacy reliance on Chinese chips

'희토류vs반도체' 미중 갈등 고조 한국에 미칠 영향은?

Beijing prohibits the exports of rare earth metals processing technology, while Washington announces a survey to identify U.S. firms' reliance on Chinese so-called "legacy chips."
However South Korean officials say the situation will largely not affect Korean companies yet.
Park Kun-woo has more on this latest U.S.-China tension.

China has announced on Thursday that it will ban the exports of technology used to extract and separate rare earth metals.

According to Reuters, the ban was put in place to protect China's dominance over rare earth metals, as well as for reasons of national security with Western countries, including the U.S., trying to launch their own operations.
China's commerce ministry had been considering adding this processing technology to its "Catalogue of Technologies Prohibited and Restricted from Export" since last December.

There are 17 rare earth metals that are used to produce electromagnets used in electric vehicles, wind turbines and electronics, and China accounts for 70 percent of the global production.
Production technology for rare earth metals and alloy materials, along with manufacturing tech for rare earth magnets were also included in the export ban.

On the same day, the U.S. Department of Commerce announced it would be surveying over 100 U.S. firms in sectors including automobiles, aerospace, and defense in January on how reliant they are on so-called legacy chips made in China.
It added the survey aims to "reduce national security risks posed by" Beijing, and identify the use and sourcing of Chinese chips in the supply chains of major U.S. industries.
U.S. Commerce Secretary Gina Raimondo said, "Addressing non-market actions by foreign governments that threaten the U.S. legacy chip supply chain is a matter of national security," adding, "We've seen potential signs of concerning practices from China to expand their firms' legacy chip production and make it harder for U.S. companies to compete."
The U.S. is also considering trading measures such as raising tariffs on Chinese-made electric vehicles.

Meanwhile, an official from Korea's industry ministry said the implications of the conflict between the U.S. and China are hard to predict.
But he added the ministry expects these will be minimal in the short-term as the country imports processed rare earth metals from China, and the U.S. has not announced measures to be taken after its survey.

Park Kun-woo, Arirang News.

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2023-12-22, 18:00 (KST)