Six new regulatory documents released by Beijing expand the scope of export restrictions, adding key battery inputs and introducing an extraterritorial licensing regime. These controls are not just about trade, they are about leverage, and they are already reshaping how companies operate across borders.
The battery sector is among the most exposed. China holds a dominant position in cathode and anode materials, and the new controls are already affecting global manufacturers. Automotive, energy storage, and medical technology firms are beginning to feel the strain.
“The biggest impact for now is in the battery supply chain,” Dr. Wübbeke notes. “China has a major position, certain dominance in the production.” This dominance means that even small regulatory shifts can have outsized effects on global supply.
Companies must move beyond reactive crisis management. Dr. Wübbeke emphasizes the need for long-term resilience strategies: second sourcing, stockpiling, and transparent supply chain mapping. These measures may be costly, but they are essential in a world where geopolitical risk is embedded in procurement.
“If you are struck by surprise,” he warns, “all you can do is emergency management.” That includes scrambling for licenses, finding alternative suppliers, and navigating complex compliance landscapes.
China has used export controls at least seven times since 2023, and Dr. Wübbeke expects more to follow. Magnesium, lithium extraction technologies, and magnets are likely next. The controls are moving beyond raw materials into production technologies — areas where China holds a technological edge.
This shift means companies must prepare not just for material shortages, but for restrictions on the tools and processes that enable production itself.
Export controls are no longer exceptional. They are becoming a structural feature of global trade. Dr. Wübbeke argues that we are already living in a global materials control regime, one where free trade is no longer the norm, and strategic restrictions are increasingly common.
This has profound implications for supply chain strategy, innovation, and corporate governance. Companies must now factor geopolitical risk into every sourcing and investment decision.
The case of Nexperia illustrates how quickly trade tensions can escalate. After the Dutch government intervened in the company, replacing its CEO and distancing it from its Chinese parent, China responded with export controls. With 80% of Nexperia’s assembly operations based in China, the move threatens global supply chains, especially in the automotive sector.
Dr. Wübbeke calls it a “special case,” but warns that similar scenarios could emerge. Companies caught between U.S. and Chinese interests may face difficult decisions, or become targets of retaliatory measures.
This is not a temporary disruption. It’s a new round in a long-term strategic contest. China’s export controls are reshaping global industries, and companies must respond with foresight, resilience, and geopolitical awareness. As Dr. Wübbeke makes clear, the time to act is now.
Watch the full interview clip on YouTube.
[AI-generated image by ChatGPT]
