Crypto News: Metals war

In 1886, chemist Clemens Winkler identified a new element in an unusual mineral from a mine in Saxony and named it in honor of his recently constituted country.

Germanium is now a core part of semiconductors used in radio frequency applications such as radar, as well as for fiber optics, solar cells for space flight, and night-vision systems.

Key Reading:
US, Europe Are Growing Alarmed by China's Rush Into Legacy Chips
Pentagon Seeks Supply of Chip Mineral After China Curbs Exports
What Are Gallium and Germanium? Niche Metals Hit by China Curbs
Xi's Metal Curbs Risk Backfiring as G-7 Seeks Alternatives

China accounted for 83% of world production last year, and as of today, exports of germanium and an associated element, gallium, are subject to export controls by Beijing.

The curbs on two minor metals that are nevertheless vital to specialized chip production are a result of the great power competition between the US and China that's rippling around the world.

China announced the controls on national security grounds, the same justification US President Joe Biden's administration has used for increasingly aggressive measures to deny Beijing access to advanced chip technology.

There may be more to come. US and European officials are now growing concerned about China's push into older-generation semiconductors that still dominate the global economy, and are debating new strategies to contain that expansion, Jenny Leonard, Ian King and Alberto Nardelli report.

The effect of these tit-for-tat measures is to drive the world's two biggest economies further apart: The US is already seeking alternative supplies of gallium. Japan said it's considering recycling and diversifying its supply of germanium and gallium, which are primarily byproducts of zinc and aluminum production respectively.

In June, Swedish miner Boliden said operations at its Tara zinc mine in Ireland — Europe's largest — were ceasing temporarily while it worked on "ensuring its competitiveness."

For Europe, it seems, the gravity of the US-China standoff has yet to sink in.— Alan Crawford

Greek border police with night-vision goggles on the border with Turkey on Jan. 21. Photographer: Konstantinos Tsakalidis/Bloomberg

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A Ukrainian drone crashed into a skyscraper that houses government offices in Moscow, according to the Russian Defense Ministry, which said it electronically jammed the craft's signal and shot down two others outside the capital. It's the second time the tower has been hit since Sunday and the third attack on Moscow in just over a week. The military also said warships in the Black Sea repelled an attack by three Ukrainian naval drones.

President Xi Jinping replaced the two most senior leaders managing China's nuclear arsenal amid reports of a sweeping corruption probe in the missile force that would play a key role in an invasion of Taiwan. The overhaul brings in new blood from the air force and navy, in a highly unusual step that suggests a desire for wholesale change in the unit's upper echelons.

Florida Governor Ron DeSantis's campaign for the US Republican presidential nomination has faced a rocky stretch marked by layoffs and donor frustration, but the financial strength of his allied super PAC could help steady his bid. He currently trails current GOP frontrunner and former President Donald Trump by more than 35 points in the RealClearPolitics average of polls.

France's Africa strategy is in tatters following the coup in Niger, where President Mohamed Bazoum is being held hostage by his own security guards. With protesters in Niger criticizing France over its continued influence, President Emmanuel Macron's government is struggling to convince nations in the Sahel region that the presence of a former colonial power is beneficial.

The military leaders of Mali and Burkina Faso warned that any intervention by force against Niger would amount to a declaration of war against the West African nations.

War, AI and climate change are shaking up the $32 trillion global-trade market. US-China tensions and Russia's invasion of Ukraine are leading companies to bring supply chains closer to home, while a shift from fossil fuels is spurring demand for materials essential for electrification. Artificial intelligence, meanwhile, is forcing employees to learn new skills. Read more about what this upheaval looks like on the ground.

Listen to our Big Take podcast on how the world does business appears to be very different now than it did before Covid. You can find it on Apple and Spotify.

Argentine Economy Minister Sergio Massa pulled off a debt-defying deal with the International Monetary Fund that will keep the nation's economy afloat for the time being, but whether it can buoy his presidential ambitions is far less certain. Manuela Tobias writes that, with elections looming, opinion polls tight, and the opposition divided, Massa can point to as much as $10.8 billion in IMF funding, but it still might not convince voters to back his Peronist candidacy.

Tune in to Bloomberg TV's Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents Annmarie Hordern and Joe Mathieu. You can watch and listen on Bloomberg channels and online here.

The US tightened entry rules for Hungarians under its visa-waiver program, citing security concerns about a fast-track naturalization plan Prime Minister Viktor Orban put in place for people living outside Hungary's borders.
Myanmar's junta pardoned Aung San Suu Kyi for some offenses she was convicted of following a 2021 coup, but she will remain in prison as the military government faces widespread unrest.
The Mediterranean region is set to be hit by more record-breaking temperatures later this month, after a brief respite from the searing heat and fires of July.
The United Nations world heritage body won't recommend including the Great Barrier Reef on the "in danger" list this year but said it's still facing "serious threat" from climate change and agriculture.

And finally ... An often impenetrable logjam of trucks laden with coal at South Africa's crossing with Mozambique has brought chaos to a sleepy border town. The trucks began trundling through Komatipoort on their way to Maputo port, from where their cargos are sent around the world, after South Africa became one of Europe's main alternatives to Russian coal. The congestion created opportunities for criminals who saw drivers stranded in the queue for days as easy targets.

Vendors prepare meals for truck drivers waiting at the border. Photographer: Leon Sadiki/Bloomberg

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