China’s graphite export control may have adverse effects on Korea

China has decided to incorporate ‘highly sensitive graphite,’ a crucial raw material for secondary battery anode components, into its export controls. This latest step in China’s strategy to control key resources reflects a trend of ‘resource weaponization.’ Before this, China had already introduced export controls on materials like gallium and germanium and has now extended these measures to include graphite. Notably, this development is expected to affect Korean companies with significant reliance on Chinese graphite substantially.

On Friday, China's Ministry of Commerce and the General Administration of Customs jointly issued a ‘Notice on the Enhancement and Adjustment of Temporary Export Control Measures for Graphite-Related Commodities,’ which is scheduled to take effect from Dec. 1. “We are including three susceptible graphite items in the control list of ‘dual-use item’ (referring to materials originally designed for civilian use but potentially adaptable for military applications),” a spokesperson from China’s Ministry of Commerce further elaborated on Friday. “This measure aligns with China’s national security and economic interests.”

Export control does not equate to an outright export ban; exporters must secure permission from the authorities for each export. Furthermore, exporters are mandated to furnish authorities with information regarding overseas buyers. This approach allows China to effectively curtail exports whenever it wants.

Korea, which has a substantial reliance on China, is particularly vulnerable to the ramifications of this measure. According to the South Korean Ministry of Trade, Industry, and Energy, as of 2021, Seoul depended on Beijing for 87% of its artificial graphite imports and 72% of its natural graphite imports.


Ki-Yong Kim kky@donga.com