On February 4, 2025, China's Ministry of Commerce, jointly with the General Administration of Customs, issued an announcement on the implementation of export controls on tungsten and related items, including tungsten carbide (not controlled under item 1C226). Why does China implement export controls on tungsten carbide?
I. Tungsten Carbide: A True "Industrial Tooth"
Tungsten carbide, a compound composed of tungsten and carbon with the molecular formula WC, plays a crucial role in the industrial sector due to its excellent physical and chemical properties such as high hardness, high melting point, and extreme wear resistance. It is known as the "industrial tooth." Tungsten carbide is the core material for manufacturing cemented carbide and is widely used in the following fields:
National Defense and Military: Tungsten carbide is an ideal material for manufacturing high-performance military equipment and plays an irreplaceable role in enhancing national defense capabilities. For example, it is a key component of armor-piercing bullets, capable of efficiently penetrating armor and enhancing strike accuracy and power. In missile components, tungsten carbide is used to manufacture high-speed gyroscopes and guidance parts, ensuring the stability and accuracy of missile flight. Additionally, tungsten carbide is applied to armor materials, such as composite armor layers for tanks and bulletproof vehicles, significantly enhancing protective capabilities.
High-end Manufacturing: In the field of machining, tungsten carbide cutting tools, with their extremely high hardness and excellent cutting performance, have a cutting efficiency tens of times that of ordinary steel, greatly improving processing accuracy and production efficiency. Tungsten carbide cutting tools are widely used in the manufacture of high-precision products such as precision machine tools, automotive engine parts, and aerospace devices, driving the upgrading and development of the manufacturing industry.
New Energy and Electronics: In the new energy sector, tungsten carbide demonstrates unique advantages as a key component for semiconductor packaging materials and photovoltaic equipment. Due to its good thermal conductivity and chemical stability, tungsten carbide is used to manufacture the back electrodes of solar panels, helping to improve photoelectric conversion efficiency and extend battery life. In the semiconductor industry, tungsten carbide coatings are applied to the blades of wafer cutting tools, effectively reducing friction and heat accumulation during the cutting process, improving chip yield and precision.
Furthermore, tungsten carbide is also used in oil drilling, mining, metallurgical industries, and other fields. Its excellent wear resistance and corrosion resistance make it an indispensable wear-resistant component and cutting tool material in these industries, effectively improving operational efficiency and safety.
II. Export Controls: National Security and Countermeasures Game
1. Protecting National Strategic Resources
Implementing export controls on tungsten carbide is an important measure to protect China's strategic resources. China is the country with the richest tungsten resources globally, with tungsten reserves accounting for more than 52% of the world's total reserves and production accounting for more than 80% of the world's total output. As an important application form of tungsten, excessive outflow of tungsten carbide will directly threaten China's resource security. By implementing export controls, the export volume of tungsten carbide can be effectively controlled, preventing the overexploitation and loss of domestic precious resources.
2. Fulfilling International Obligations
Implementing export controls is also part of China's fulfillment of international responsibilities such as nonproliferation. By strictly managing specific items, especially those with dual-use attributes for military and civilian purposes, China demonstrates its image as a responsible great power, actively participates in global governance, and promotes world peace and stability.
3. Addressing International Challenges
The current international situation is complex and volatile, with certain countries adopting a series of restrictive measures against China to try to curb its development. In this context, by adjusting the trade policies of key mineral resources such as tungsten carbide, China can not only strengthen the supervision of resource export flows and prevent them from being used against China's interests but also prompt other countries to reconsider bilateral or multilateral cooperative relationships and seek more fair and reasonable solutions.
4. Promoting Industrial Upgrading
Additionally, export controls contribute to promoting industrial upgrading in the tungsten industry. In the long run, export restrictions will drive tungsten product enterprises to increase investment in technological innovation, explore more efficient utilization methods of tungsten resources, and develop tungsten products and services with higher added value. This will not only help improve the competitiveness of enterprises themselves but also promote technological progress and industrial upgrading throughout the tungsten industry.
