South Korea held an emergency meeting on Tuesday to assess the impact of and seek responses to China's envisioned export controls on two metals essential for chipmaking and communications equipment, the industry ministry said.
On Monday, China's commerce ministry said it will impose restrictions on exporting gallium and germanium starting Aug. 1 in a move to protect its national security, requiring their exporters to apply for special state permits.
The two materials are crucial for making a range of key products, including chips, solar panels and electric vehicles, and China is a major producer and exporter of the materials in the world.
Government officials and industry watchers here said the envisioned move is expected to have a limited impact on the domestic industry, but they will closely watch related developments amid chances of further tit-for-tat moves by the United States and other nations.
South Korean companies have secured a stockpile of gallium that can last about 40 days, and they will be able to import germanium from nations other than China, such as the U.S. and Canada, according to industry ministry officials.
"We will work to minimize potential impacts of the move on our industry by having consultations with China through various channels," a ministry official said.
The export restriction is seen as apparent retaliation after Washington restricted chip exports to China amid the intensifying Sino-U.S. rivalry.
Source: Yonhap News Agency