Beijing Counters Washington

Beijing Counters Washington
Various rare earths piled to be loaded onto a ship at a port in Lianyungang, east China's Jiangsu Province, on Sept. 5, 2010 STR/AFP via Getty Images
Milton Ezrati
Updated:
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Commentary

Beijing and Washington seem to have entered a tit-for-tat competition on trade. Late last year, the Biden administration placed restrictions on the export to China of equipment for the manufacture of advanced semiconductors and at the same time announced subsidies for the domestic manufacture of semiconductors. Washington even got Japan and the Netherlands to join the export ban. Now, just before the beginnings of high-level China–U.S. talks on trade, Beijing has parried these moves by imposing restrictions on the export two metals—gallium and germanium—both of which are essential to many commercial and military applications. So far, Washington has not responded to Beijing’s move.

Milton Ezrati
Milton Ezrati
Author
Milton Ezrati is a contributing editor at The National Interest, an affiliate of the Center for the Study of Human Capital at the University at Buffalo (SUNY), and chief economist for Vested, a New York-based communications firm. Before joining Vested, he served as chief market strategist and economist for Lord, Abbett & Co. He also writes frequently for City Journal and blogs regularly for Forbes. His latest book is "Thirty Tomorrows: The Next Three Decades of Globalization, Demographics, and How We Will Live."
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