China has implemented trade restrictions with Taiwan, raising concerns about impacts to global supply chains. China banned the export of natural sand, including lake, river, and sea sand made of silica and quartz, critical raw materials needed to produce wafers, the substrate of semiconductors, and building and construction products including cement, ceramics, and moulding equipment. As China’s exports of quartz and silica-based natural sand account for 23% of Taiwan’s supply, concerns are growing that trade restrictions could disrupt the global semiconductor or construction building materials industries.
Figure 1: Map of China’s military drill areas. Source: Bloomberg.