India, Vietnam may gain from US-China chip war

US AND CHINA have got into a fresh tit-for-tat trade restriction. After the US announced export restrictions on computer chip-making equipment, software and high-bandwidth memory chips, China on Tuesday retaliated by banning gallium, germanium, antimony and other key high-tech materials exports to the US.

- RAVI DUTTA MISHRA

The fresh trade war assumes significance as "connecting economies" who are preserved as neutral and do not fall into US or China camp such as India have benefited from the geo-political tensions between US and China since Donald Trump's first term.

As China's export share in the US saw a decline from 2019, countries like Vietnam, Mexico and India have witnessed an increase in export opportunities to the US. China on Tuesday announced an export ban on the United States of gallium, germanium, antimony and other key high-tech materials with potential military applications. Beijing had earlier, too, partly restricted exports of strategically important materials by asking exporters to apply for licenses.