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Following the recent trade talks between China and the US on the sidelines of the APEC summit in South Korea, China has agreed to suspend its earlier proposed export restrictions on key sectors – rare earth production and materials, lithium-batteries and related supply chain – in return for similar easing of trade restrictions from the US. This brings a short reprieve for worldwide manufacturing that was awaiting a deal between the world's two largest economies, but is far from the long-term solution craved many industries.
Suspension of battery related export control measures
On 7 November 2025, the Ministry of Commerce (MOFCOM) and the General Administration of Customs (Customs) jointly issued Decision No. 70 (2025)1 (the Suspension Decision), which suspends, amongst others, the implementation of Decision No. 58 (2025) 2 — Decision to Implement Export Controls on Lithium-Ion Batteries (including Cells and Packs), Artificial Graphite Anode Materials, and Related Production Equipment and Technology. The suspension took effect immediately on 7 November 2025 and will remain in force until 10 November 2026.
Decision No. 58 released on 9 October this year added additional items to the List of Dual-Use Items under Export Control, meaning that exporters would have been required to obtain an export licence to export key battery-rated products, equipment and materials (For details on the content and impact of Decision No. 58, please refer to our article here). Decision No. 58 was originally scheduled to take effect on 8 November 2025.
The Suspension Decision was issued just one day prior to the
date of entry into force of Decision No. 58. Exports of lithium-ion
batteries, artificial graphite anode materials, and related
production equipment and technology therefore remain unrestricted.
However, the Suspension Decision is temporary only and it remains
to be seen whether controls will resume after 10 November 2026.
This will largely be influenced and decided by political and
international trade relations at the time.
The Suspension Decision also suspends the implementation of several
other regulations restricting the export of rare earths3
; and those relating to synthetic diamonds4 . It also
comes alongside the suspension of the decision5 to
impose additional port charges on US shipping6.
Key observations
- One-Year Window for Unrestricted Exports. The Suspension Decision means there is now a one-year window (until 10 November 2026) during which exports of lithium-ion batteries, artificial graphite anode materials, and related production equipment and technology remain unrestricted. Market participants are expected to take advantage of this period to export their existing orders and secure new export contracts without the need for an export licence. This temporary relief may also encourage short-term procurement strategies by overseas buyers seeking to lock in supply before any potential reinstatement of controls.
- Acceleration of Overseas Capacity Deployment. Although the suspension lifted the immediate export restrictions, this is unlikely to change the long-term strategies of some Chinese manufacturers and equipment suppliers expanding or deploying manufacturing capacity overseas. Export controls in Decision No. 58 and the related industry reactions reflected the role that Chinese battery manufacturers play in the global supply chains and how easily it could be affected by policy regulations, and thus strategies to plan ahead are important for all market participants.
- Continued Uncertainty and Risk Management. There is no guarantee that export controls will not be reinstated after the expiry of the suspension period or even earlier, as future decisions will likely depend on geopolitical developments and international trade relations. Exporters and industry participants should therefore remain vigilant to any policy developments, as well as review contractual provisions relating to export licences, force majeure, termination rights and remedies to manage potential risks effectively in the future. Contractual flexibility will be essential to address the possible reactivation of controls in the future.
How we can help
To better understand how you may be affected by these changes, please reach out to one of our batteries and energy sector experts.
Footnotes
1. Available at:
https://www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_b1ec77dd3f0d4762952904df7cdaadec.html.
2. Available at: www.mofcom.gov.cn/zwgk/zcfb/art/2025/art_79646f0161564975a938fe00fee158d5.html.
3. Decisions No. 56, 57 of the Ministry of Commerce and the General Administration of Customs dated 9 October 2025, and Decisions No. 61 and 62 of the Ministry of Commerce dated 9 October 2025.
4.Decision No. 55 of the Ministry of Commerce and the General Administration of Customs dated 9 October 2025.
5. Available at: https://xxgk.mot.gov.cn/2020/jigou/syj/202511/t20251104_4179268.html.
6. See https://www.hsfkramer.com/notes/energy/2025-posts/chinas-new-maritime-port-changes-cmot-countermeasures-target-us-linked-vessels for further details on China's proposed additional port charges on US shipping.
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.
