China's Scrutiny on Technology Exports

China is intensifying its scrutiny over the export of technology critical for battery materials. This move is part of Beijing's strategy to maintain control over a crucial supply chain amidst escalating global trade tensions.

Background and Context

• The Chinese government is considering adding technologies related to lithium refining and battery chemical production to its controlled items list.
• This initiative is seen as a protective measure for innovations developed during China's rise in the global battery and electric-vehicle production sector.

Implications of Proposed Controls

• The proposal highlights the growing competition between China and the US in areas like critical minerals and semiconductors.
• It indicates a strategic move to keep advanced lithium technologies confidential.
• Overseas investments involving such technologies will face stricter regulatory scrutiny.
• The focus will particularly be on processes to produce battery-grade lithium chemicals, such as direct lithium extraction, where China holds significant expertise.