China curbs a ‘potential bargaining chip’ to counter US-led semiconductor ban, say experts

Beijing’s decision to impose export controls on critical raw materials used in manufacturing semiconductors, communication equipment and solar panels could complicate the US-led efforts to shift critical supply chains away from China, experts said on Monday, as it seeks to gain leverage in negotiations with Washington over access to core technology.

“If China chooses to weaponise these supply chains, it will greatly complicate the calculus in the US, EU and Asia in terms of reducing dependence on China,” an effort that is just beginning, said Paul Triolo, a senior associate at the Center for Strategic and International Studies, a think tank in Washington.