China Restricts Exports of Graphite As It Escalates a Global Tech War

An anonymous reader quotes a report from CNN: China has unveiled plans to restrict exports of graphite -- a mineral crucial to the manufacture of batteries for electric vehicles (EVs) -- on national security grounds, the Ministry of Commerce and the General Administration of Customs said Friday. The announcement comes just days after the United States imposed additional limits on the kinds of semiconductors that American companies can sell to Chinese firms. China, which dominates the world's production and processing of graphite, says export permits will be needed, starting in December, for synthetic graphite material -- including high-purity, high-strength and high-density versions -- as well as for natural flake graphite. [...] According to the US Geological Survey (PDF), the market for graphite used in batteries has grown 250% globally since 2018. China was the world's leading graphite producer last year, accounting for an estimated 65% of global production, it said. Besides EVs, graphite is commonly used in the semiconductor, aerospace, chemical and steel industries. The export curbs were announced as China faces pressure from multiple governments over its commercial and trade practices. For more than a year, it has been embroiled in a tech war with the United States and its allies in Europe and Asia over access to advanced chips and chipmaking equipment. "At the moment both China and Western countries are engaged in a tit for tat, highlighting how protectionist measures often spread. Newton's third law that every action causes a reaction applies here, too," said Stefan Legge, head of tax and trade policy research at the University of St Gallen in Switzerland. "At the same time, both sides of the dispute also realize how costly it is if geopolitics trumps economics," he added.

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