• Africa is more of a net exporter to China than an importer of the raw materials.
• Most of the raw materials that China is utilizing come from the African continent.
• The restriction will only apply to the European countries.

A Financial Analyst says China’s restriction on the export of two metals used in the car manufacturing industry will not affect the African Continent to a large extent.
Speaking to Money FM News, Trevor Hambayi said this is because Africa is more of a net exporter to China than an importer of the raw materials it is exporting.
Mr. Hambayi noted that most of the raw materials that China is utilizing come from African and the country exports finished products to the continent.
“The restriction by China on the export of specific metals that are used in the car manufacturing industry, I do not think that this is going to affect the African Continent to that extent because the first aspect that you do realize is that most of the raw materials that China is utilizing in having to do this come from the African continent.”
“So we are more of a net exporter to China rather than an importer of the raw materials China is exporting finished products to the African continent,” Mr. Hambayi noted.
He added that the restriction will only apply to European countries, hence this is a trade war that we are going to be experiencing between the west and the east.
“The second issue China having a restriction in terms of the export of those materials, that restriction will only apply to the European countries because what they are doing is who is going to control the future market of the electric vehicles, is that this is going to be a considerable issue, when it comes to 2030 in terms of carbon emissions.”
“So this is fundamentally a trade war that we are going to be experiencing between the west and the east. The one who controls raw materials is going to have an upper hand in terms of how that trade war turns out,” he stated.
China has imposed restrictions on exporting raw materials that are crucial to parts of the semiconductor, telecommunications and electric-vehicle industries in an escalation of the country’s tit-for-tat trade war on technology with the US and Europe.
Gallium and germanium, along with their chemical compounds, will be subject to export controls meant to protect Chinese national security starting 1st August, 2023.
China’s Ministry of Commerce said in a statement last week Monday that exporters for the two metals will need to apply for licenses from the commerce ministry if they want to start or continue to ship them out of the country, and will be required to report details of the overseas buyers and their applications.