Berlin is reportedly seeking to reduce its economic exposure to the Asian country, a report by Bloomberg as quoted by Russia Today. The initiative is part of a government package of measures that would block China from key products and services needed for microchip production.
Semiconductor chips are a critical part of the global supply chain and are used in a wide range of goods from cars and refrigerators to smartphones and artificial intelligence.
If implemented, the move could damage the Chinese economy as it would restrict exports of sensitive chemicals supplied by German companies such as science and technology giant Merck, and the world’s largest chemical producer, BASF, the outlet said, citing sources with knowledge of the matter.
Germany does not have its own semiconductor industry; however, Merck and BASF supply chip-makers around the world with critical chemicals for production. Export restrictions would put at risk China’s ability to develop advanced technologies and even its capability to produce semiconductors, Bloomberg says.
German Chancellor Olaf Scholz and Economy Minister Robert Habeck are in close coordination with the US and EU on the matter, the outlet said.
MNA/PR