Sources: Germany wants to cut chemical exports to China

Germany wants to restrict exports to China of chemicals used to make chips. The proposal is part of a package of measures currently being discussed by Chancellor Olaf Scholes’ government. The move is aimed at cutting off China’s access to goods and services needed to produce advanced semiconductors, Bloomberg News said.

Earlier, the US, Netherlands and Japan have decided to restrict the export of advanced chip technologies to China. This will be essential for national and international security as these high quality chips can be used for military purposes as well. For example, chip machine maker ASML is not allowed to export high-end equipment to China.

Germany does not have the technology to make advanced chips. However, German chemical companies Merck and BASF supply the critical chemicals needed to make these semiconductors worldwide.

According to insiders, talks about such export restrictions within the German government coalition are still at an early stage. The stakes are high for Germany as China has become the country’s largest trading partner.

According to insiders, there has been no pressure from Washington on Germany to limit exports of chemicals to China. Chancellor Scholz has previously argued that the German economy should not become dependent on China, but he believes this should be done gradually.