In recent years, the United States has become increasingly aggressive in its regulation of Chinese enterprises, not only increasing tariffs on Chinese goods but also restricting American companies from exporting to China.

Of course, China has not been passive in the face of this; it has implemented several countermeasures that have put the United States on the back foot.

What exactly has China done to make the United States regret its actions?

As early as during Trump's presidency, the U.S. had been imposing economic sanctions on China, starting with placing a number of Chinese companies on a control list, limiting their product exports to the U.S., and increasing tariffs on goods.

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Later, it collaborated with the Netherlands, South Korea, and Japan to cut off supplies to Chinese enterprises, prohibiting these countries from providing chips and technology to China.

Additionally, the Dutch photolithography machines also ceased exports to China.

This year, citing national security concerns, the U.S. once again added 31 Chinese companies to the control list.

Over the past five years, the U.S. has consecutively blacklisted more than 1,000 Chinese entities, including Huawei, DJI, and iFLYTEK, covering everything from semiconductors to aerospace, and from nuclear power to military industries—virtually sealing off high-tech enterprises.

In July of this year, the U.S. chip giants could no longer remain indifferent.

CEOs of Intel, Qualcomm, and NVIDIA publicly expressed to the government that such sanctions would only lead to China breaking through technological blockades, and American companies would no longer find a market like China.

In fact, China has been working quietly and diligently.

Despite the relentless suppression by the U.S., China's market is more than capable of nurturing a vast array of technological talents.

Without the feedback from the Chinese market, American companies have seen a gradual reduction in production capacity and scale.

Take Intel as an example; its current stock price has nearly halved compared to before China's sanctions, and NVIDIA's performance has not grown since 2021 without the support of the Chinese market.

Under such aggressive suppression, China certainly will not be passive.

Just last month, China restricted the export of gallium and germanium to the U.S. To understand the severity of this countermeasure, it is essential to know what gallium and germanium are.

Gallium and germanium are crucial raw materials for semiconductor chip production, with China's reserves accounting for more than 68% of the global total, and it possesses the entire industrial chain's purification technology.

Gallium and germanium are obtained from the reaction of alumina, with a very limited production.

However, China's aluminum industry is complete, so China can produce gallium and germanium without any pressure.

With 68% of the reserves, isn't the remaining amount enough for global use?

This is where the strength of China's industrial chain comes into play.

If Europe and America were to start building a complete industrial chain now, not to mention the enormous financial investment, it is a matter of time that cannot be afforded.

The development and application of chips cannot wait for years; otherwise, they would have been overtaken by China and other countries long ago.

Moreover, even if European and American companies manage to establish a complete industrial chain, if China were to fully open exports, the newly built chain would be quickly crushed, so no company dares to do so.

After China's regulation of gallium and germanium, a strange phenomenon occurred.

American media reported that the U.S. was not afraid because such regulation would not benefit China either.

What's going on?

The U.S. media claimed that restricting the export of gallium and germanium would lead to overproduction, which would further hit the prices of raw materials, thus affecting companies across the entire production chain.

This claim by the U.S. is obviously a bit far-fetched; there is no issue of overproduction with gallium and germanium.

In 2022, China consumed 85% of the gallium production, with only 2.5% exported, so in terms of production capacity, China's consumption capacity is very strong, and there is almost no need to worry about production capacity.

Moreover, looking at the effects after the export regulation, it seems that other countries are more frantic.

The U.S. Department of Defense first admitted that the lack of gallium reserves has a significant impact on the U.S.

Subsequently, Japan, South Korea, Australia, and some European companies have inquired about the situation of gallium, showing that it is they who are being choked, not us.

Finally, due to China's export regulation, the global prices of gallium and germanium have skyrocketed, from the original 2,000 yuan per kilogram to the current 10,000 yuan, a fivefold increase in price.

Therefore, judging from the results, there is no overproduction of gallium and germanium; on the contrary, the rise in prices has led to higher profits for Chinese companies.

Thus, the U.S. is entirely crying wolf and pretending to be calm.

If it had no impact, it wouldn't mention it at all.

Now it is even pretending to consider China's interests, saying it is detrimental to China, which is clearly a desperate move, trying to provoke China.

The U.S.'s tactics are too clumsy; without raw material supply, even the most advanced technology cannot produce chips.

The real chokehold is the resources; even a skilled housewife cannot cook without rice.

Now the U.S. can only be speechless and swallow the bitter fruit.

If it wants to continue seeking cooperation with China, it must offer appropriate negotiation chips in return.