On July 3rd, 2023, the Ministry of Commerce and the General Administration of Customs of China announced the implementation of export controls on gallium and germanium-related items, which will be officially implemented from August 1, 2023.
What are the main uses of gallium and germanium? What is their importance to China? Why is it necessary to impose export controls on gallium and germanium-related items? (Breaking News: Malaysia Halts Rare Earth Exports!)
Gallium and Germanium are Subject to Export Controls
On the 3rd day, the Ministry of Commerce and the General Administration of Customs of China announced the implementation of export controls on gallium and germanium-related items.
According to the announcement by the Ministry of Commerce, based on the relevant provisions of the “Export Control Law of the People’s Republic of China,” the “Foreign Trade Law of the People’s Republic of China,” and the “Customs Law of the People’s Republic of China,” and in order to safeguard national security and interests, it has been decided, with the approval of the State Council, to impose export controls on gallium and germanium-related items. According to the announcement, gallium-related items include metal gallium, gallium nitride, gallium oxide, and other 8 items, while germanium-related items include metal germanium, zone-refined germanium ingots, germanium phosphide-zinc, and other 6 items.
Exporters who wish to start or continue exporting will be required to apply for a license from the Ministry of Commerce and report detailed information about overseas buyers and their applications.
The Ministry of Commerce shall review the export application documents received from the date of receipt, either independently or in conjunction with relevant departments, and make a decision to grant or deny the license within the statutory time limit. For the export of the listed items in this announcement that have a significant impact on national security, the Ministry of Commerce, in conjunction with the relevant departments, will submit it to the State Council for approval.
According to the announcement, this export control will take effect on August 1st.
What are the Main Uses of Gallium and Germanium?
Gallium is a rare metal with a low melting point and high boiling point. It is renowned as the “backbone of the electronics industry.” Gallium possesses characteristics such as high conductivity, moderate thermal conductivity, and low toxicity in its liquid state. It serves as a promising raw material for the synthesis of advanced functional materials. The main application of gallium is in the manufacturing of semiconductor devices, including integrated circuits, optoelectronic devices, and solar cells. It exhibits excellent electronic properties and conductivity, making it easy to form low-melting-point alloys with various other metals. This makes it suitable for producing high-performance and high-speed electronic devices.
Germanium, on the other hand, is one of the most dispersed elements in the Earth’s crust and is considered an important strategic resource listed in the strategic reserve materials of several countries. It exhibits properties such as an affinity for stones, iron, sulfur, and organic matter. Additionally, it possesses optical properties such as high infrared refractive index and low dispersion, along with excellent mechanical properties. Due to its thermoelectric characteristics and sensitivity to infrared radiation, germanium has wide applications in infrared imaging technology, thermal sensors, and other fields. Moreover, germanium is used as a semiconductor material and plays a significant role in optoelectronics, optics, and optical communications.
Furthermore, arsenic gallium, which is included in the export control, serves as a representative of second-generation semiconductor materials and holds a prominent position in the development of microelectronic devices for high frequency, high speed, high-temperature resistance, and radiation resistance. Semi-insulating gallium arsenide is primarily used in radar, satellite television broadcasting, microwave and millimeter-wave communication, wireless communication (represented by mobile phones), and optical fiber communication. Gallium nitride, as a typical third-generation semiconductor material, is the most advanced semiconductor material in the world. It serves as a core material and basic component in the emerging semiconductor optoelectronic industry, with vast potential applications in fast charging for mobile phones, 5G communication, power supplies, new energy vehicles, LED technology, and radar, among others.
In summary, gallium and germanium-related items are important rare metals with wide-ranging applications in fields such as electronics, optics, communications, military, and aerospace.
China’s Significance in the Field of Gallium and Germanium-related items is Substantial
Data shows that the current global reserves of gallium are approximately 230,000 metric tons, with China having the largest reserves of gallium metal, accounting for approximately 80%-85% of the world’s total reserves.
Reports indicate that China is the largest producer of gallium metal, primarily supplying developed economies such as the United States, the European Union, Japan, and South Korea. According to data from 2020, the global gallium production was approximately 3,300 metric tons, with China contributing around 70% of the total production.
Furthermore, Germany and Kazakhstan ceased gallium production in 2016 and 2013, respectively (Germany announced the restart of primary gallium production by the end of 2021). Hungary and Ukraine also stopped gallium production in 2015 and 2019, respectively. As a result, China’s share of global gallium production has consistently increased and by 2021, it accounted for over 90% of the global gallium production.
However, it is noteworthy that China’s gallium industry has primarily focused on exporting primary products while importing processed products that involve core technologies, which presents a challenge in terms of deep processing capabilities.
Regarding germanium, the United States Geological Survey released statistical data in 2016, stating that the globally identified germanium reserves amount to only 8,600 metric tons. The main distribution of germanium is in the United States, China, and Russia.
The United States accounts for 45% of the global reserves, followed by China, which accounts for 41% of the germanium reserves worldwide. China’s germanium production primarily comes from lignite mines, which are easily exploitable. As a result, China has been a leading contributor to the global germanium supply, providing approximately 68.5% over the past decade. Although the United States has the largest germanium resource reserves globally, it has designated germanium as a defense reserve resource since 1984 and has largely ceased germanium mining in recent years.
Why are Export Controls Imposed on Germanium and Gallium-Related Items?
Both germanium and gallium are rare metals that are widely used in electronic, communication, military, and aerospace industries. Germanium is utilized in the manufacturing of semiconductor devices, while gallium is used in the production of infrared detectors and lasers. The development of these industries is closely related to national security and strategy, hence the need to control the export of these metals.
Furthermore, export control helps prevent the illegal acquisition and misuse of these rare metals. The production and processing of these metals require highly sophisticated technology and equipment, which are possessed by only a few countries. Export control prevents the transfer of such technology and equipment into the wrong hands, safeguarding the security and stability of the country.
In conclusion, the implementation of export control on germanium and gallium is necessary to uphold China’s security and strategic interests. It is a vital measure taken to protect the country and maintain its safety and stability.
Announcement Text:
According to the relevant provisions of the Export Control Law of the People’s Republic of China, the Foreign Trade Law of the People’s Republic of China, and the Customs Law of the People’s Republic of China, in order to safeguard national security and interests, with the approval of the State Council, it has been decided to implement export controls on germanium and gallium-related items. The announcement regarding the matter is as follows:
- The following items that meet the following characteristics shall not be exported without permission:
(A) Germanium-related items.
Germanium metal (element) (Reference Customs Commodity Number: 8110929010, 8112929090, 8112999000).
Gallium nitride (including but not limited to chips, powders, scrap, and other forms) (Reference Customs Commodity Number: 2850001901, 3818009001, 3825690001).
Gallium oxide (including but not limited to polycrystalline, single crystal, chips, wafers, powders, scrap, and other forms) (Reference Customs Commodity Number: 2825909001, 3818009002, 3825690002).
Gallium phosphide (including but not limited to polycrystalline, single crystal, chips, wafers, and other forms) (Reference Customs Commodity Number: 2853904030, 3818009003, 3825690003).
Gallium arsenide (including but not limited to polycrystalline, single crystal, chips, wafers, powders, scrap, and other forms) (Reference Customs Commodity Number: 2853909026, 3818009004, 3825690004).
Indium gallium arsenide (Reference Customs Commodity Number: 2853909028, 3818009005, 3825690005).
Gallium selenide (including but not limited to polycrystalline, single crystal, chips, wafers, powders, scrap, and other forms) (Reference Customs Commodity Number: 2842909024, 3818009006, 3825690006).
Gallium antimonide (including but not limited to polycrystalline, single crystal, chips, wafers, powders, scrap, and other forms) (Reference Customs Commodity Number: 2853909029, 3818009007, 3825690007).
(B) Gallium-related items.
Gallium metal (element, including but not limited to crystals, powders, scrap, and other forms) (Reference Customs Commodity Number: 8112921010, 8112921090, 8112991000).
Zone-melted gallium ingots (Reference Customs Commodity Number: 8112921090).
Germanium phosphide zinc (including but not limited to crystals, powders, scrap, and other forms) (Reference Customs Commodity Number: 2853904040, 3818009008, 3825690008).
Gallium epitaxial growth substrates (Reference Customs Commodity Number: 8112921090).
Germanium dioxide (Reference Customs Commodity Number: 2825600002, 3818009009, 3825690009).
Germanium tetrachloride (Reference Customs Commodity Number: 2827399001, 3818009010, 3825690010).
- Exporters shall apply for export licenses in accordance with relevant regulations. They must submit an application to the provincial competent department of commerce, fill out the application form for dual-use items and technology exports, and submit the following documents:
(A) The original or consistent photocopy/scanned copy of the export contract or agreement.
(B) Technical specifications or testing reports of the intended export items.
(C) Proof of the end-user and intended use.
(D) Introduction of the importer and end-user.
(E) Identification documents of the legal representative, key management personnel, and handling personnel of the applicant.
- The Ministry of Commerce shall review the export application documents within the statutory time limit, either independently or in conjunction with relevant departments, and make a decision to grant or deny the license.
For the export of the listed items in this announcement that significantly impact national security, the Ministry of Commerce shall submit it to the State Council for approval.
- If approved, the Ministry of Commerce shall issue a license for the export of dual-use items and technology (referred to as the export license).
- The procedures for applying and issuing export licenses, handling special cases, and the retention period of documents shall be carried out in accordance with the relevant provisions of the Ministry of Commerce and the General Administration of Customs Order No. 29 of 2005 (Administrative Measures for the Import and Export License of Dual-Use Items and Technologies).
- Exporters shall present the export license to the customs and complete the customs procedures in accordance with the provisions of the Customs Law of the People’s Republic of China and shall be subject to customs supervision. The customs shall handle the customs clearance procedures based on the export license issued by the Ministry of Commerce.
- If an exporter exports without permission, exceeds the scope of the license or commits other violations, the Ministry of Commerce or other relevant departments shall impose administrative penalties in accordance with relevant laws and regulations. If a crime is committed, criminal responsibility shall be pursued in accordance with the law.
- This announcement shall be implemented from August 1, 2023.
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