Recently, China has imposed export restrictions on the rare metals germanium and gallium, which has attracted the attention of the international market. Germanium and gallium are important raw materials for semiconductors and the defense industry, and China is the world's largest producer and exporter. China's export restrictions have led to a sharp rise in germanium and gallium, with gallium rising more than 27% in a week. Faced with this situation, Rostec announced that it will increase the production of germanium to meet domestic demand and possibly increase exports. Russia is the world's second largest producer and exporter of germanium, and its germanium production areas are mainly concentrated in the Novosibirsk region, with an annual production capacity of about 20 tons.
China's export restrictions are based on strategic and scarce considerations for rare metals, and are aimed at protecting domestic industries and resources. This move also reflects China's important position and influence in the global semiconductor and defense industries. However, this does not mean that China will have confrontation or competition with other countries in these areas. On the contrary, China has always adhered to the principle of win-win cooperation and carried out multi-level exchanges and cooperation with other countries. In particular, China has maintained a high level of political mutual trust and strategic cooperation with Russia, and the two countries have a wide range of cooperation projects and common interests in the economic, scientific, technological, and military fields.
Russia's increase in germanium production is not intended to seize market share from China or undermine the effect of China's export restrictions. In fact, Russia's germanium production capacity and market size are far inferior to China's. Germanium in Russia is produced as a by-product of other minerals, so its cost and efficiency are not high. Moreover, Russia also needs to import high-purity germanium from China for use in high-end semiconductors and defense industries. The purpose of Russia to increase germanium production is mainly to cope with the fluctuations of the international market, to ensure its own production and consumption demand, and to maintain relations with other countries. Russia does not want to clash with China in the market for germanium and gallium, but wants to maintain a good partnership with China.
In short, China's export restrictions on germanium and gallium are a reasonable and necessary policy, which is conducive to the protection of China's industry and resources, as well as the rational distribution and utilization of rare metals in the world. Russia's move to increase germanium production will not have a negative impact on China's policy, nor will it affect Sino-Russian cooperation in areas such as semiconductors and defense industry. China and Russia share common interests and goals in the production and use of rare metals, and should continue to strengthen communication and coordination to jointly promote development and progress in this field.