July 4 (Reuters) - China has announced export restrictions on some gallium and germanium products, metals used in computer chips and other products, citing national security interests.
July 4 (Reuters) - China has announced export restrictions on some gallium and germanium products, metals used in computer chips and other products, citing national security interests.
Here’s the thing about resource based export bans: prices will go up and as a result new producers/mines will enter the market. In time, new alternatives will be found, cost of production will go down, and china will loose its comparative advantage permanently.