/ world today news/ On Friday, China optimized export controls on certain categories of graphite, a key material in the production of batteries for electric vehicles, in an attempt to protect its national security and development interests.
According to experts, the move could prove crucial and is needed to maintain the stability of China’s supply chain amid escalating pressure and restrictions on China’s high-tech sector from a number of Western countries.
Under new measures announced by the General Administration of Customs and the Ministry of Commerce, from December 1 exporters will have to apply for permits for “certain highly sensitive graphite articles”. China is the largest producer and exporter of graphite in the world.
The types of highly sensitive graphite items were already under temporary control, according to the Commerce Department, and are now being formalized. At the same time, temporary controls on five types of low-sensitivity graphite articles, which are mainly used in downstream industries such as steel, metallurgy and chemical industries, were lifted. The application of export controls on specific graphite articles is common international practice, and in this sense, China’s move is a normal adjustment to better protect national security and interests and is not targeted at a specific country or region, the statement also said. the ministry on the matter.
The export control is the result of a comprehensive assessment of the provisional measures covering graphite products, is in line with the Export Control Act, and is also the result of Western pressure on Chinese companies. On Tuesday, the US further tightened restrictions on exports of artificial intelligence-related chips and semiconductor manufacturing equipment to China and added a number of Chinese enterprises to the “enterprise list” for export controls. The European Union is also considering imposing tariffs on electric cars made in China, which it says benefit from government subsidies.
“As the West continues its efforts to contain China, critical materials for high-end manufacturing have become a major point of competition, and Beijing has every right to take the necessary measures to protect its own security and interests.” Graphite is a key material that has strategic importance in the new energy industry and global players are fiercely competing with each other in this sector. Such moves can be expected to become more common if the US continues to escalate technology sanctions against China,” said economic commentator Tien Yun.
China has high production capacity and strong processing capabilities for graphite materials, but there is no reason to continue depleting its own mineral resources only to have its technological development blocked, other experts said. According to them, successive restrictions by the US and its allies to cut off Chinese companies from the production of chips and electric cars clearly hurt Beijing’s interests in the industrial chain.
Sun Qing, president emeritus of the China Carbon Industry Association, says the move will benefit the development of the sector. “I believe that the decision to adjust these measures is based solely on the development of the industry, without any other consideration such as targeting a third party.” Sensitive graphite products can be used for military purposes, in the aerospace sector and space exploration, which explains why this move is necessary to maintain national security,” he explains.
Experts also note the need for China to take measures to protect the environment and its low-carbon development. “We should learn from the experience with rare earths, not exploit them excessively and export them at low prices,” Sun Qing said, adding that developed countries rarely develop their own graphite mines to protect resources.
China is the leading producer of graphite, with about 65 percent of the supply in 2022, according to the US Geological Survey’s 2023 annual report. But in terms of reserves, China ranks third behind Turkey and Brazil. “Graphite resources in China must be protected. Although graphite cannot be considered scarce, relying solely on supplies from China is not correct,” said Chen Jing, vice president of the Institute of Technology and Strategy.
Experts also point out that almost all countries impose export controls on key materials, and China’s move is not an outright ban, but rather an export regulation. “Active regulation by China could make the country and the world pay more attention to the importance of graphite in the global supply chain. This will benefit related industries in the country and the global supply chain,” Chen Jing added.
China imposed export controls on gallium- and germanium-related products from August 1, which were also in line with international norms and did not target specific countries. A number of applications to export gallium and germanium products in accordance with China’s regulations have been approved and exporters have received export licenses, the Ministry of Commerce said at a press conference in September.
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