China's "graphite export ban" is officially implemented, whose cake is touched?

On December 1, China’s policy of implementing export controls on specific graphite items was officially implemented. This news has made countries such as Japan and South Korea extremely anxious. It is reported that the specific graphite items controlled for export this time are important manufacturing raw materials for weapons and high-speed railways, and are also key raw materials for new energy vehicles that have gained momentum in recent years. China controls the vast majority of the world's natural graphite resources and key refining technologies. Last year, China accounted for 70% of total graphite production, and has long exported it at low prices.

Data shows that South Korea will import more than 90% of its graphite raw materials from China in 2022, spending US$225 million on it. In Japan, most of the battery graphite raw materials used in its electric vehicle manufacturing also come from China. In order to "stop" China's graphite ban, Japan's Chief Cabinet Secretary Hiroshi Matsuno "threatened": We will issue inquiries to China and submit them to the WTO at the same time. If China violates the rules, we will take measures! Across the ocean, the United States is also worried. They are worried that graphite controls will cause the price of electric vehicles to rise sharply: "If only Chinese companies can obtain these raw materials, it will be a fatal blow to other car companies."

In response to these voices, Chinese officials responded: It is a common international practice to control key materials to safeguard the interests of the country. Why can other countries do it but not us? Japan restricts the export of 23 types of semiconductor equipment and materials, the Netherlands bans the export of high-end DUV lithography machines to China, the EU launches a countervailing investigation into China's electric vehicles, and Japan's "Vipalo" capsules, which suppress aging and rejuvenate youth, sell for 20,000 per bottle. When exporting to China at a high premium... After repeated clamoring to no avail, Japan and South Korea finally realized that "moral kidnapping" and "messing around" were useless and had to find other ways.

According to the Japan Broadcasting Association (NHK), Japanese companies have recently imported a large amount of Chinese graphite to ensure that there will be no shortage of raw materials in a short period of time, and are considering changing Australian graphite suppliers. Japan’s Ministry of Economy, Trade and Industry has also specially adjusted the revised budget for 2023, and will allocate 260 billion yen (approximately 12.4 billion yuan) to support Japanese companies that manufacture artificial graphite and cooperate with other developing countries with graphite resources.

South Korea plans to build a new battery anode material factory in Daegu to reduce its dependence on China's battery supply chain. Some people in the industry are worried that after this incident, the trade barriers imposed by the United States and Europe against China will not be able to block China's development, and the current large-scale investments by major Korean battery companies in the United States and Europe are likely to be in vain.

No matter what countermeasures are taken, everyone knows that the cost of graphite obtained from other channels will inevitably rise, and it is far less expensive and high quality than Chinese graphite. Of course, more people are still waiting for the day when China lifts its graphite export ban.

It is worth mentioning that China has always maintained a friendly foreign policy. When it announced the graphite control, it already stated that as long as it complies with Chinese regulations, exports will not be affected. Only those masterminds and accomplices who are stumbling over us, covertly or covertly, will be afraid. Everyone in the world is interested in profit. In business competition and international confrontation, blindly compromising will not bring good results. You must have the confidence and determination of a big country. Only if you have strong competitiveness and show your strength in a timely manner can you defend own rights and interests.