Restricting the export of gallium and germanium, why do we also need to card even if it is clear that the United States will not die?

As is well known, starting from August 1st, we will implement export controls on gallium and germanium related products. Any foreign enterprise that wants to purchase gallium and germanium related products from China requires a license

As is well known, starting from August 1st, we will implement export controls on gallium and germanium related products. Any foreign enterprise that wants to purchase gallium and germanium related products from China requires a license.

Because of the ban, the prices of gallium and germanium in the world are soaring, and many foreign enterprises are panicking, especially some enterprises in the United States, Japan, and the Netherlands that have large demand for gallium and germanium. Before, the United States, Japan, and the Netherlands jointly blocked China's Semiconductor industry, so everyone knows.

But to be honest, although the ban has made these companies panic, in fact, the cards are definitely not dead.

After all, gallium and germanium are not unique to China. Others used to not mine them because of high costs or environmental pollution, and China has relatively low-cost exports of gallium and germanium. As long as they are not fools, they will buy from China instead of mining themselves.

Once China restricts exports and cannot meet its own needs, regardless of whether the cost is high or not, or whether pollution is not, it will have to be mined. Also, countries that used to have low cost-effectiveness and competitiveness in their products will increase production to compete in this market. For example, have Congo and others recently expressed their intention to increase production of gallium and germanium?

Of course, many netizens definitely don't agree with my viewpoint, thinking that they can definitely get stuck in the United States. Since they can't get stuck, why bother to get stuck? Isn't it enough to eat?

In fact, there are at least three reasons why one should go for a card even if they know it won't die. In my opinion, there are at least three points:

1. One is the issue of attitude.

We used to use a lot of American cards, such as bans and Entity List. Although they may not be really useful, they also make us sick.

So we can't just get beaten and not fight back, so we also need to make a statement, regardless of whether we can block the other party or not. It's okay to disgust the other party first.

2. Warning to the United States.

By restricting the export of gallium and germanium, it is equivalent to warning the United States that we also have many things that can block you. Currently, we only block gallium and germanium, and in the future, we can also block various resources, materials, products, technologies, etc. such as rare earths.

China also has many globally leading technologies that can take action against the United States, so this can be considered as telling the United States not to provoke me. If you provoke me, I will also take the other approach and give it back.

But everyone should be clear on this point, whether it's the US card or our card, both parties have a significant impact. Unless it's a last resort, we usually don't want to card the other party.

3. Raise the prices of gallium and germanium in the international market and increase usage costs.

This has two benefits. On the one hand, it can revalue the prices of gallium and germanium. Previously, gallium and germanium sold in China were relatively cheap. With such a card, international prices will increase and China's export prices will increase.

On the other hand, by raising prices, it is equivalent to increasing the cost of using gallium and germanium for enterprises in the United States, Japan, the Netherlands, and reducing their product competitiveness. This also weakens their market and is beneficial to China.

So this is the meaning of gallium and germanium. If we could really die with just one card of gallium and germanium, we would have used this trick a long time ago.

In fact, any act of getting stuck in the neck is actually not enough to kill the other party. Our chips are not enough to kill the American card, and our gallium and germanium are certainly not enough to kill the American card.

The most important thing is technological breakthroughs. Once a technological breakthrough reaches a global leading level, the so-called bottleneck will break through without breaking through. Just like when China's etching machines reach the 3nm level, the United States will no longer block etching machines, and this is the same principle.

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