China Adds Graphite to Export Control List... Inevitable Impact on South Korea

The Chinese government has decided to include high-sensitivity graphite, such as spherical graphite, a key raw material for secondary batteries, in its export control list, making it inevitable that South Korea, which relies on China for nearly 90% of its supply, will also be affected.

On the 20th, China's Ministry of Commerce and the General Administration of Customs announced the "Notice on the Improvement and Adjustment of Temporary Export Control Measures for Graphite-related Items." The export controls will take effect from December 1 of this year.

The items subject to export control include ▲ high-purity (purity exceeding 99.9%), high-strength (tensile strength exceeding 30 MPa), and high-density (density exceeding 1.73 g/cm³) artificial graphite materials and products ▲ natural flake graphite such as spherical graphite and expandable graphite and their products.

A spokesperson for the Ministry of Commerce explained on the official website that "the three high-sensitivity graphite items, including spherical graphite, which were previously under temporary control, are now included in the dual-use items list (materials produced for civilian use but convertible for military purposes)." He also stated, "The temporary export control measures on five low-sensitivity graphite items, such as carbon electrodes for blast furnaces mainly used in basic national industries like steel, metallurgy, and chemical industries, will be canceled," adding, "We have already notified the relevant countries and regions of these changes."

The spokesperson said, "Export controls on specific graphite items are internationally accepted practices. As the world's largest producer and exporter of graphite, China has long firmly fulfilled its international obligations such as non-proliferation."

Regarding the background of this adjustment, he said it was decided after a comprehensive evaluation of the temporary control on graphite items in accordance with the Export Control Law, and added, "It will help fulfill international obligations such as non-proliferation, ensure the safety and stability of global supply chains and industrial networks, and protect national security and interests." He further emphasized, "The normal adjustment of China's export controls is not aimed at any specific country," and "Exports that meet the relevant regulations will be permitted."

Graphite, as a raw material for secondary battery anodes, is expected to inevitably impact South Korea, which has a high dependence on China. According to the Ministry of Trade, Industry and Energy, as of 2021, South Korea imported 87% of its artificial graphite and 72% of its natural graphite from China. A source explained, "South Korea's dependence on Chinese graphite approaches 90%, making the impact inevitably greater compared to previously controlled materials like gallium and germanium."

This content was produced with the assistance of AI translation services.