China graphite exports – level 2

26-10-2023 07:00

China decided to demand export permits for specific graphite products because of its national security.

Experts see this as an attempt to secure control over important mineral supplies. China is not only the largest producer and exporter of graphite worldwide but the country also processes more than 90% of the world’s graphite into the material used in electric vehicle batteries.

This requirement for export permits comes at a time when foreign governments press Chinese companies due to concerns about their industrial practices. For example, the European Union is considering imposing tariffs on EVs made in China. The EU claims they receive unfair subsidies. Moreover, the US government recently expanded restrictions on Chinese companies’ access to semiconductors, including advanced artificial intelligence chips produced by Nvidia.

Difficult words: export permit (an official document which says that you can export something), tariff (a tax or duty on a specific kind of product which you export or import), subsidy (money by the state which helps an industry or business).

You can watch the original video in the Level 3 section.

What potential effects will China's demand for export permits have on foreign markets for graphite and electric vehicle batteries?


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