China’s commerce ministry has proposed export restrictions on some technology used to make battery components and process critical minerals lithium and gallium, a document issued on Thursday showed.
TakeAway Points:
- According to a paper released on Thursday, China’s commerce ministry has suggested limiting exports of certain technologies used in the production of battery parts and the processing of vital minerals like lithium and gallium.
- China’s proposals would help the country retain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries, according to Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence.
- Malaysia’s communications regulator said it granted Tencent’s WeChat and ByteDance’s TikTok licences to operate in the country under a new social media law, but that some other platforms had not applied.
China Proposes Export Restrictions On Battery Components
If implemented, they would be the latest in a series of export restrictions and bans targeting critical minerals and the technology used to process them, areas in which Beijing is globally dominant.
Their announcement precedes the inauguration later this month of Donald Trump for a second term during which he is expected to use tariffs and various trade restrictions against other countries, in particular China.
Adam Webb, head of battery raw materials at consultancy Benchmark Mineral Intelligence, said China’s proposals would help the country retain its 70% grip on the global processing of lithium into the material needed to make electric vehicle (EV) batteries.
“These proposed measures would be a move to maintain this high market share and to secure lithium chemical production for China’s domestic battery supply chains,” he said.
“Depending on the level of export restrictions imposed, this could pose challenges for Western lithium producers hoping to use Chinese technology to produce lithium chemicals.”
The proposed expansion and revisions of restrictions on technology used to extract and process lithium or prepare battery components could also hinder the overseas expansion plans of major Chinese battery makers, including CATL, Gotion and EVE Energy
Some technologies to extract gallium would also be restricted.
Thursday’s announcement does not say when the proposed changes, which are open for public comment until Feb. 1, could come into force.
Malaysia grants WeChat, TikTok licences to operate under new law
Tencent’s WeChat and ByteDance’s TikTok were granted licences to operate in Malaysia under a new social media law, according to the country’s communications authority; however, some other platforms had not submitted applications.
The law, aimed at tackling rising cybercrime, requires social media platforms and messaging services with more than 8 million users in Malaysia to obtain a licence or face legal action. It came into effect on Jan. 1.
In a statement on Wednesday, the Malaysian Communications and Multimedia Commission said messaging platform Telegram was in the final stages of obtaining its licence, while Meta Platforms, which owns Facebook, Instagram and WhatsApp, had begun the licensing process.
The regulator said X had not submitted an application because the platform said its local user base did not reach the 8 million threshold. The regulator said it was reviewing the validity of X’s claim.
Alphabet’s Google, which operates video platform YouTube, had also not applied for a licence after raising concerns about the video sharing features of YouTube and its classification under the licensing law, the regulator said. It did not state the concerns or how they relate to the law but said YouTube must adhere.
“Platform providers found to be in violation of licensing requirements may be subject to investigation and regulatory actions,” the regulator said.
Harmful media content rise
Malaysia reported a sharp increase in harmful social media content in early 2024 and urged social media firms, including Meta and short video platform TikTok, to step up monitoring of their platforms.
Malaysian authorities deem online gambling, scams, child pornography and grooming, cyberbullying and content related to race, religion and royalty as harmful.
The companies do not publish the number of users per country on their platforms.
According to independent data provider World Population Review, WeChat has 12 million users in Malaysia.
Advisory firm Kepios said YouTube had about 24.1 million users in Malaysia in early 2024, TikTok 28.68 million users aged 18 and above, Facebook 22.35 million users, and X had 5.71 million.
