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China is set to impose export controls on certain graphite products, potentially having a significant impact in the United States on both electric vehicle manufacturing and some military applications.
The restrictions, set to take effect from December 1, were announced on October 20 by China's General Administration of Customs and Ministry of Commerce (MOFCOM), as reported by China Daily.
The implications of the restrictions could be far-reaching as the use of graphite extends from the civilian sectors—it is used in pencils—to national defense.
Shu Jueting, a spokeswoman for the ministry, said at a news conference that such export controls are an international norm and, to date, the ministry hasn't received any exemption applications from companies.
In 2022, China was the top graphite-producing country in the world, as it produced an estimated 850,000 metric tons of graphite, a crystalline form of carbon, according to data provider Statista.
Experts have expressed concerns about the potential impact on the U.S. electric vehicle market.
The latest decision comes after China announced further export control restrictions on rare earths last month without naming the minerals covered by the restrictions.
Analysts Emily Benson and Thibault Denamiel, writing for the Centre for Strategic and International Studies (CSIS), highlighted the particular significance of these restrictions,
"While the August controls were aimed at the chips sector, China's graphite controls have more bite in electric vehicle (EV) battery manufacturing since the material is used as a key input for anodes, the negatively charged portion of the EV battery."
Newsweek contacted the U.S. State Department for comment.
In 2018, the U.S. Government underscored the criticality of graphite by including it on a list of 35 essential minerals, highlighting its vulnerability to supply chain disruptions and its importance in manufacturing processes crucial to the economy or national security.
China's top spy agency, the Ministry of State Security (MSS), framed the context of these controls in broader terms: "Just as human life is inseparable from vitamins, critical minerals are also called the 'vitamins' of strategic industries and are related to national development and national security," the MSS said in a WeChat post.
The MSS further criticized Western nations for their approach to securing critical minerals: "Some Western countries seek their own selfish interests and have established various 'small circles' such as the International Alliance on Energy and Critical Minerals, the Mineral Security Partnership, and the Sustainable Critical Minerals Alliance, and built 'small courtyards and high walls' to obtain critical mineral resources by any means, seriously hindering the process of globalization."
The United States is heavily involved in the three critical mineral alliances mentioned by China's spy agency on WeChat.
About the writer
Aadil Brar is a reporter for Newsweek based in Taipei, Taiwan. He covers international security, U.S.-China relations, and East Asian ... Read more