Germany to put limits on export of chemicals to China that are used to manufacture semiconductors

According to Bloomberg news on Thursday, Germany is considering imposing restrictions on the export of certain chemicals to China that are used in the manufacture of semiconductors. This move is part of the German government’s strategy to reduce its economic dependence on China, which is currently the world’s second-largest economy.

At present, discussions on this issue are still in the early stages in Berlin’s political circles. If Germany goes ahead  with these restrictions, it may harm the country’s relationship with China as the German government views China as a strategic rival while continuing to press for fairer market access.

This action would follow similar steps taken by other European Union countries to limit the supply of certain materials for microchip manufacturing to China. For example, last month, the Dutch government announced plans to further restrict the export of semiconductor technology to safeguard national security, joining the US efforts to curb chip exports to China.

To implement the export controls, the most practical and quickest way would be to include the relevant goods and services on Germany’s national dual-use list, as per Bloomberg sources. In March, Germany’s economy minister Robert Habeck had suggested the possibility of imposing export restrictions to China to prevent Germany from losing its technological edge.