this post was submitted on 05 Jul 2023
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China curbs critical metal exports in retaliation for Western restrictions on chip industry (www.scmp.com)
submitted 1 year ago by Blursty@lemmygrad.ml to c/worldnews@lemmygrad.ml
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Gallium and germanium are used in lots of electronic components. AESA (active electronically scanned array) radars used on modern warships and fighter airplanes can not be made without those metals. China produces some 95% of those available on the global market.

It will take one or two years until the currently available stocks outside of China are diminished. But it takes much longer to open up new mining and processing facilities for replacement of the Chinese production. The processes used therein are quite dirty. A not-in-my-backyard attitude will make any setup of new facilities difficult to pursue.

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[โ€“] Spagetisprettygood@lemmygrad.ml 14 points 1 year ago (1 children)

Not to mention because of the capitalist nature, companies that will be creating these new supply chains will charge exorbitant money for lackluster work leading to even more delays.

[โ€“] yogthos@lemmygrad.ml 20 points 1 year ago

Absolutely, the whole chip reshoring is going to end up being a giant money laundering scheme just like Ukraine where oligarchs are going to feast on the subsidies without actually producing much of anything. They're trying to replicate the success of China's state investments without having state control over the industry. It can't work.