Beijing
China, the leading global producer and exporter of graphite, has announced the implementation of export permits for specific graphite products, citing national security concerns. The move is perceived as a proactive step to regulate the supply of vital minerals and address challenges related to its dominance in global manufacturing.Amid increased international scrutiny of Chinese industrial practices, the European Union is contemplating tariffs on Chinese-made electric vehicles (EVs) due to concerns over unfair subsidies. Additionally, the United States recently expanded restrictions on Chinese companies’ access to semiconductors, including cutting off sales of advanced artificial intelligence chips.
Under the new regulations effective from December 1, China will require exporters to obtain permits for specific graphite types, including high-purity synthetic graphite and natural flake graphite and their derivatives. While certain highly sensitive graphite items were already subject to temporary controls, the ministry has relaxed restrictions on less sensitive graphite items used in fundamental industries such as steel, metallurgy, and chemicals. The announcement has triggered concerns among industries heavily reliant on Chinese graphite imports, such as South Korea, which is now exploring alternative sources from countries like the United States and Australia, potentially leading to increased costs. South Korea’s trade ministry has emphasized the necessity of close communication with battery and material manufacturers to prevent disruptions in the lithium-ion battery sector. Similarly, Japan intends to engage with China regarding the operational policies of the new measures and is prepared to take appropriate actions if necessary, in line with World Trading Organization rules.
