Trade with China: China, a toxic relationship

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The semiconductor substrates manufactured by a Saxon company enable facial recognition on cell phones to work even in the dark. The company Freiberger Compound Materials specializes in the production of these materials and describes itself as the world market leader. However, the production of these semiconductor substrates depends on a rare raw material called gallium, 95 percent of which comes from China. After the Chinese government introduced export controls, there are fears that raw material supplies could be cut off or prices could rise sharply. This underlines the vulnerability of the German economic model in crises and its dependence on autocratic regimes. The situation highlights the difficulty of becoming independent from China, as it involves not only simple mass-produced goods, but also specific raw materials used in various sectors, such as the automotive or technology industries. Both the German government and companies are trying to reduce dependence on China, but progress is slow and the risks are high.