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China's decision to implement export permits for certain types of highly sensitive graphite products, effective from Dec 1, is in line with its commitment to fulfilling international obligations and ensuring national security, experts said on Friday.
They made the comments after the government added three highly sensitive graphite items, including spherical graphite — which were previously subject to temporary controls — to the export control list for dual-use items, according to a notice jointly issued by the Ministry of Commerce and the General Administration of Customs on Friday.
At the same time, China canceled temporary controls on five types of low-sensitivity graphite items like carbon electrodes for furnaces, which are mainly used in steel, metallurgy, chemical and other applications. These policy measures will all take effect from Dec 1, said the notice.
Graphite is a mineral composed of stacked sheets of carbon atoms with a hexagonal crystal structure. It has varied industrial applications, including in electronics, dry batteries, lubrication, metallurgy and steelmaking.
China had already notified affected countries and regions, said a spokesperson for the ministry, adding that export controls over specific graphite items are common international practice.
As the world's largest producer and exporter of graphite, China has long been firmly fulfilling its international obligations such as nonproliferation, and has implemented export controls on specific graphite items according to the needs of safeguarding national security and interests. It has implemented temporary controls over some graphite items, said the spokesperson.
Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, said that aside from being used in the high-technology sector, many graphite materials are also used for weapons or other products in the military field. This move can contribute to global security.
"The new policy does not mean that such materials cannot be exported. As long as relevant requirements are met, trade can continue," Zhou said. "Businesses can still access more resources, and foreign companies are welcomed to participate in innovative resource-based product development and utilization in China. This will also help strengthen supply chain and business ties between China and other economies."
The European Union, the United States, the United Kingdom and Australia have all implemented policies to secure graphite reserves and supplies across the world, according to information released by the Beijing-based Huaon Industrial Research Institute.
For example, the US government has introduced several policies to ensure the reliable supply of over 30 minerals, including graphite, since 2017.
"Graphite materials are widely used in fuel cells and lithium-ion batteries. As a major producer of graphite, China's policy on export permits for certain graphite products will have a certain impact on the global supply chain of batteries and new energy vehicles," said Liu Zhibo, a professor specializing in graphene materials at Nankai University in Tianjin.
"Currently, China is leading the development of NEV batteries, and graphite plays a significant role in battery research and production, including the use of graphene to develop high-performance batteries," he said.
The global production of graphite reached 1.61 million metric tons in 2022, up 7.6 percent year-on-year. China remains the world's leading graphite producer, accounting for over 70 percent of global production in 2022. Following China, other major producers are Mozambique, Tanzania and Madagascar, data from the United States Geological Survey showed.