NEW DELHI: In an escalation of its ongoing Cold War with the United States over access to critical technologies, China's commerce ministry on Monday announced that it will exercise control over the exports of certain strategic minerals.China's export controls will come into effect on August 1 and will be applicable to eight gallium-related products, including gallium antimonide, gallium arsenide, gallium metal, gallium nitride, gallium oxide, gallium phosphide, gallium selenide, and indium gallium arsenide.Similarly, six germanium products will be subjected to these controls, including germanium dioxide, germanium epitaxial growth substrate, germanium ingot, germanium metal, germanium tetrachloride, and zinc germanium phosphide.Exporters will need to complete procedures to obtain export licenses, as stated by China's commerce ministry in a released statement.Here is an FAQs on why China's ban on gallium and germanium are important and what it means for IndiaWhy has China banned exports of strategic materials germanium and gallium?- To protect its national security and interests, as these metals are essential for the development of advanced technologies in the fields of electronics, defence and renewable energy.- To retaliate against the US and its allies, who have imposed restrictions and taken other strategic actions to curb China's access to semiconductors and chipmaking technologies.- To send a warning message to the Biden administration that China holds significant cards when it comes to inputs to the semiconductor, aerospace, and automobile industries, and can and will increasingly be willing to inflict pain on US companies.- To gain more bargaining power in the global chip war and to assert its dominance in the high-tech sector.What are the implications of China's export restrictions on germanium and gallium?China is a major producer of germanium and gallium, so the country's export restrictions could have a significant impact on the global supply of these metals.

This could lead to higher prices for germanium and gallium, and it could also make it more difficult for companies to obtain these metals.

The export restrictions could also have a negative impact on the development of new high-tech technologies that rely on germanium and gallium.What are germanium and gallium?Germanium and gallium are rare metals that are used in a variety of high-tech applications.

Germanium is a silvery-white metal that is transparent to infrared radiation.

It is used in fiber optic cables, night vision devices, and solar cells.

Gallium is a silvery-gray metal that is liquid at room temperature.

It is used in semiconductor devices, such as lasers and LEDs.Why are germanium and gallium considered strategic materials?Since these metals are relatively rare, there is a risk of supply disruptions.

In addition, the production of germanium and gallium requires specialized facilities, so there are a limited number of companies that can produce these metals.What are the current market trends for these metals?The demand for germanium and gallium is expected to increase in the coming years due to the growth of the semiconductor industry and the development of new technologies such as 5G, artificial intelligence, quantum computing and renewable energy.

The prices of these metals have also risen significantly in recent years due to supply constraints and geopolitical tensions.Where are germanium and gallium found?Germanium is found in small amounts in zinc ores, coal fly ash, and some other minerals.

Gallium is more abundant than germanium, but it is still considered a strategic material.

It is found in trace amounts in bauxite and zinc ores, and it is produced as a byproduct of the aluminum and zinc industries.How much do gallium and germanium cost presently?According to data from Refinitiv Eikon on the Shanghai Metal Exchange, the price of 99.99% pure gallium in China rose by 5.97% during the previous session to reach 1,775 yuan ($245) per kilogram on Monday.

This price surge represents the highest level observed since May 16.Similarly, the data from Refinitiv Eikon on the Shanghai Metal Exchange indicated that the price of germanium ingot in China stood at 9,150 yuan ($1,264) per kilogram on Monday.Are there any substitutes?According to the United States Geological Survey (USGS), silicon or indium can be utilized as replacements for gallium in arsenide wafers in specific applications.

In certain electronic applications, silicon can serve as a more cost-effective alternative to germanium, as stated by the USGS.Infrared application systems sometimes employ zinc selenide and germanium glass as substitutes for germanium metal.

However, it is important to note that these alternatives may come at the cost of compromised performance, according to the USGS.Critical minerals in IndiaIn line with the country's Atmanirbhar (self-reliance) roadmap and considering the requirements of sectors such as defence, agriculture, energy, pharmaceuticals, and telecom, India has identified 30 critical minerals.

The ministry of mines unveiled the first-ever report titled 'Critical Minerals for India' in the last week of June."As an emerging global economic powerhouse, it is essential to understand and harness the potential of critical minerals to fuel the country's growth, competitiveness, and sustainable development," Union minister Pralhad Joshi said in his foreword of the report.

The report emphasizes the necessity to identify and develop value chains for these critical minerals within the country.The report emphasizes the necessity to identify and develop value chains for these critical minerals within the country.The identified critical minerals are: Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE (Platinum Group Elements), Phosphorous, Potash, Rare Earth Elements (REE), Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium, and Cadmium.

These minerals are expected to provide a guiding framework for policy formulation, strategic planning, and investment decisions within the mining sector.Gallium and germanium's availability in IndiaAccording to the ministry's report, germanium is not available in India.

India is 100% dependent on import to meet its germanium requirements.

China, South Africa, Australia, France and the US are leading import sources for germanium.Meanwhile, gallium is recovered as a by-product while producing alumina.

Two plants, namely, HINDALCO at Renukoot, Uttar Pradesh and NALCO Damanjodi alumina refinery, Odisha, had recovered gallium in the past, the ministry said in its report.How will India be impacted from China's curbs?Since, both germanium and gallium are not found in abundance in India, India is likely to be directly or indirectly impacted by China's export restrictions on these two minerals.A 'warning' to US, allies According to an editorial published by the Chinese state media tabloid Global Times on Tuesday, China's decision to impose export restrictions on critical minerals used in the production of semiconductors and electric vehicles is a clear message that China will not passively accept being excluded from the global chip supply chain.

The editorial argued that these controls on gallium and germanium products serve as a practical way for China to communicate to the United States and its allies that their attempts to limit China's access to advanced technology are a miscalculation.Furthermore, the editorial highlights that China has, for many years, exploited its own reserves of rare earth resources, often at the expense of the environment, to meet the demands of the global semiconductor industry.

In light of this, the editorial questioned why China should not make necessary adjustments and exercise caution in depleting its limited reserves of rare earth resources to support those who have aligned themselves with the US-led "decoupling" agenda.The editorial concluded by stating that there is no reason for China to continue depleting its own mineral resources only to be hindered in its pursuit of technological development.

It suggests that China should consider a more strategic approach to ensure its resources are not exhausted while facing restrictions on technological advancements.(With inputs from agencies)