Germany wants to limit chemical exports for the Chinese chip industry

Germany would consider an export ban of certain chemicals to China. The Chinese chip industry would need these substances to produce semiconductors. Through the measure, Germany reportedly wants to reduce its economic dependence on China.

According to Bloomberg talks about a possible export ban are still in an exploratory phase . According to sources the press agency was able to speak to, German policymakers realize that such an export ban could damage diplomatic relations between Germany and China.

If the export ban does come about, two German chemical companies, Merck KGaA and BASF, certainly be affected. According to Bloomberg, the chemicals of Merck KGaA are used in the production of almost all semiconductors in the world, while BASF also supplies numerous chemicals for companies in the chip industry, such as Taiwan’s TSMC.

Germany is not the first European country to consider an export ban of certain products to China. Early this year The Netherlands reached an agreement with the United States and Japan on the export restriction of chip production machines to China. In March, the Dutch cabinet extended the export ban for ASML machines to China. According to Minister Schreinemacher, the new export ban was then ‘necessary to maintain technological leadership’.

At the end of last year, US President Joe Biden in turn also introduced new and far-reaching US export restrictions that deal a major blow to the Chinese chip sector.