Phiting back
That was quick! Just days after Washington further tightened the screws on chip exports to China, Beijing flexed its own export-control muscles.
On Friday, China's Ministry of Commerce (MofCom) slapped controls on high-grade graphite, effective December 1, 2023.
- This move broadens MofCom’s existing controls on graphite materials to include high-purity and spherical graphite.
The official explanation? Preventing nuclear proliferation.
Graphite does play a role in creating nukes, but: It is also used in a variety of important industrial applications, such as in batteries and semiconductor equipment.
ICYDK: China dominates global graphite production, accounting for roughly 65% of world production (USGS).
Get smart: Tightening access to critical minerals has become Beijing’s go-to strategy for retaliating against chip controls.
- When Japan and the Netherlands rolled out chip export controls on China a few months ago, MofCom responded with export controls on gallium and germanium.
- That makes us think Beijing already has a playbook of mineral controls for use whenever the US or its allies move against China.
The big question: What’s the next critical mineral control poised for deployment?