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Introduction
On 9 October 2025, China's Ministry of Commerce (MOFCOM) and the General Administration of Customs (Customs) jointly issued Decision No. 58 of 2025.
The decision is effective from 8 November 2025 and implements new export control restrictions on items related to lithium batteries, cathode materials, artificial graphite anode materials and related equipment.
It places such items on the List of Dual-Use Items under Export Control, meaning export of such items requires the exporter to procure an export licence.
In addition to this decision, on the same day MOFCOM and Customs also issued several decisions (Decisions No. 56, 57, 61 and 62) imposing export control restrictions on rare earth and related items, and Decision No. 55 on the export control restrictions on synthetic diamond and related items.
This article will focus on the content and impact of Decision No. 58 relating to lithium battery, cathode materials, artificial graphite anode materials and related equipment.
Items subject to dual-use export control under the Decision No. 58
The following items, including goods, equipment and technologies, are added to the List of Dual-Use Items under Export Control by Decision No. 58 (listed below in bilingual version):
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Batteries and batteries equipment
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Battery materials – cathode active materials and equipment
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Battery materials – anode active materials and equipment
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Licensing requirements for export of dual-use items
Under China's relevant regulations on export control, including but not limited to Export Control Law, Foreign Trade Law, and the Administrative Regulations on the Export of Dual-Use Items, exporters who wish to export an item included in the List of Dual-Use Items under Export Control should apply for and obtain an export licence from MOFCOM.
There are two types of export licences available under these regulations and, as exceptions, a process of registration is available for a limited number of special circumstances.
Single licence (单项许可)
- A single licence has a validity period of no more than one year and allows the exporter to export to a specific end user only once.
- The exporter needs to submit the following documents to apply for such a licence: (1) the identity document of the exporter company's legal representative or main manager; (2) contracts or other evidence for the export of dual-use item; (3) technical description of or report on the dual-use item; (4) documentation certifying the end user and end use of the dual-use items; and (5) any other documents requested by MOFCOM.
General licence (通用许可)
- A general licence has a validity period of no more than three years and allows the exporter to export to multiple end users multiple times;
- A general licence is only available where the exporter can demonstrate that it has a satisfactory internal compliance management system for dual-use export control, has previous records of exporting dual-use items, and a stable (relatively unchanged) export channel and portfolio of end users.
- To apply for a general licence, in addition to the application documents required to be submitted for a single licence as detailed above, the following additional documents will need to be submitted: (1) a description of the company's internal compliance management system for dual-use export control; (2) a description of the company's record of obtaining and using a dual-use item export licence; and (3) a description of the export channel and end users. The expectation is that a general licence will only be given to those exporters showing a consistent track-record with single licences.
Special registration
- This mainly applies to (1) products that are exported from China for repair, testing or verification and then re-imported back to China within a reasonable time; and (2) products imported to China for exhibitions and then re-exported from China, or products exported from China for exhibitions and then re-imported to China.
Key observations
Restrictions on the sector and export contracts
This is the first time that batteries, battery materials and related equipment have been placed under the dual-use item restrictions. As the dual-use export control regime requires the exporter to declare the end use and the end users, this enables Customs to monitor the quantity and destination of export of these items and their exporters.
Any party to existing export contracts should review contract provisions regarding the obligation to obtain an export licence and the consequences of not being able to obtain an export licence – including force majeure, termination rights and remedies – to assess its contractual position under existing export contracts.
Impact on global supply chains
The Decision will likely have a significant impact on China's battery industry and the global supply chains for lithium-ion batteries and related products. China is a major producer and exporter of lithium battery materials, components and equipment.
The export controls could lead to supply shortages and supply chain management issues for overseas markets. The impact on existing supply chains and manufacturing bases should be assessed in detail – and it is expected that overseas buyers and investors alike will closely monitor and evaluate the impact of the Decision on their existing battery supply chain and plans for manufacturing capacity overseas.
Exporters and industry participants should act quickly to take advantage of the window from now until 8 November 2025 when the policy takes effect.
Deploy capacity overseas
It is likely that the latest round of restrictions will speed up the process of batteries, battery material and related equipment manufacturers expanding and/or deploying their manufacturing capacities overseas. It will take time for this overseas capacity to build up, and also Chinese manufacturers will need to comply with any relevant export restriction for overseas deployment – so close co-operation between Chinese manufacturers and their overseas customers will be vital to successfully navigate these challenges. For example, if the overseas deployment involves the transfer of restricted technologies to an overseas entity, this might require technology export licences as well.
Extraterritorial effect
The dual-use export regulation claims to have some extraterritorial effect. The regulations allow MOFCOM to request an overseas entity to comply with China's dual-use regulations if the overseas entity transfers or provides dual-use items outside China to certain people or countries if such items were produced overseas by items originally produced in China, or produced using technologies from China.
MOFCOM has not currently exercised such power in respect of battery, battery material and equipment. However, we have seen these measures with extraterritorial effect for rare earth related items. Based on Decision No. 61 of 2025 released on 9 October 2025, foreign entities and individuals are asked to apply to MOFCOM for an export licence even for the overseas on-sale of some rare earths.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
