China has unleashed another bombshell, restricting the
export of graphite for making batteries. That will affect the rising EV
industry the most. The EU wants to investigate Chinese EVs and now China
is hitting them hard in the groin.
This is going to affect the
production of batteries, the most important component for EVs. They are
going to the WTO to complain about the restrictions placed by China, but
so what? China is investing totally in EVs, and therefore needs
graphite in enormous quantities and needs to restrict its export. It is
illogical for China to export graphite while there is such a need
domestically. Shall we call it a 'National Security' issue for China?
Sure,
countries like the USA, Germany, Japan can talk about setting up
facilities to counter China's move, but at what cost and how long it is
going to take? China again is the major exporter of graphite, and
produces the best quality graphite from its years of experience in
refining. Globally, Turkey holds the biggest reserves of graphite,
followed by Brazil and China.
Talking about taking China to the
WTO, what about the restrictions placed by the USA against China in
chips and lithography machines? Those are non issues? As I said before,
China has plenty of cards to play and if the USA and its allies wants to
escalate the tech war, China is not going to remain passive and just
tolerate the humiliation. China will hit back where it is going to hurt
most. Not the kind of irrelevant rubbish like the sanctions on trees,
dogs, music, plays, sports etc that the West placed against Russia.
Anonymous
1 comment:
Two retaliatory moves by China is already creating so much hysteria in the USA, the West and Japan and South Korea.
The restrictions on Gallium and Germanium affected so many sectors needing such elements in the world, particularly in semiconductors and the military sectors. China controls much of the reserves and most of the processing facilities and expertise.
The restrictions on gaphite is going to affect the global EV manufacturing sector. Most countries can set up EV production, but the one very important component that needs graphite in bulk are the car batteries. Again, China controls the processing facilities and expertise. Actually Japan knew about China's control of raw resources relating to EVs, which is why Japan betted on Hydrogen fuel cell vehicles instead. Sorry, wrong number!
The tech war is escalating, after Huawei came out with the Mate 60 mobilephone, and SMIC was able to produce the 7 nm Kirin 9000 chips for them. In the face of further USA restrictive moves in the tech war against China, what else are they afraid of China restricting in retaliation? Let them lose their sleep.
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