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The Financial Times: China has imposed export controls on graphite, a key material used in electric-vehicle batteries. This move is seen as a response to US-led restrictions on technology sales to Chinese companies and is likely to escalate tensions between the two nations over tech supply chains. China, which dominates the global supply of graphite, will now require special export permits for three grades of this mineral. The Chinese government justifies these export controls on “national security” grounds. China’s dominance in the production of graphite is evident, as it accounted for approximately 65 percent of global supplies in 2022. Some finished graphite products have a market share in China that approaches 100 percent. This development follows the recent tightening of export controls by the Biden administration on cutting-edge artificial intelligence chips to China. Beijing has criticized the US for these controls, stating that they overstretch the concept of national security and amount to unilateral bullying. While Chinese officials are concerned about potential retaliation, China has been using its control over various materials and resources as a strategic response. In July, similar restrictions were placed on metals like gallium and germanium, which are vital for industries such as electric vehicles, microchips, and some military weapons systems. These measures underscore China’s growing influence in global supply chains and its ability to leverage this power in international trade disputes.
The entire article can be read at the link https://www.ft.com/content/8af8c05c-8e54-40e9-9051-5a0b2b036c32
