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China Sets New Export Controls on Graphite Products

China on Oct. 20 announced new export controls on certain graphite products, placing restrictions on a key material used to produce batteries for electric vehicles. The country's Ministry of Commerce will require companies to secure export licenses for high-purity, high-strength artificial graphite materials and their products, along with natural flake graphite and its products, according to an unofficial translation of a notice.

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The ministry said exporters seeking licenses will need to submit the original export contract, a technical description of the goods to be exported, end-user certifications and other information. China, the world's top graphite exporter, will make a decision on export applications "within the statutory time limit." Export violators will face "administrative penalties" and could be held criminally liable.

In a separate release, the ministry said the export controls are a "common international practice" to ensure the "security and stability of the global supply chain and industrial chain." China also said it decided to impose the restrictions "based on the need to safeguard national security," adding that it "notified relevant countries and regions" about the restrictions. The controls, which China said already had been in place on some graphite products on a temporary basis, take effect Dec. 1.

The announcement comes about two months after China placed new export controls on two other critical minerals, gallium and germanium, which are used to make semiconductors and other key technology (see 2307050018 and 2310030035).