🛢 Energy & Commodities risk-off · 0–6 months
A what‑if from the future

What if China reimposes its graphite export curbs?

Beijing reinstating and widening synthetic/spherical graphite license controls chokes Western anode makers — a genuine trade-weapon shock to EV battery supply chains and ex-China anode startups; the broad Nasdaq/semis -2.9% cascade overstates the tech-index hit since graphite is a battery, not chip, input. Rhymes with China's Oct-2023 graphite export controls and the 2010 rare-earth embargo on Japan. Forward angle: China refines ~90% of anode graphite, so the leverage is real and durable; the cleanest trade is ex-China anode/battery-materials equities (Novonix, Syrah) higher and Western EV-cost pressure, not a semis sell-off.

33%
our model probability
over 0–6 months
prediction markets — wisdom of the crowd
loading live odds…
Empirically anchored 33% · 90% range 10–55% · 23 analogues · measured class trade_war 49% in 6 mo · 3% held back for the unknown
how we built this number — every step
Measured class rate — trade_war ≈1.3449/yr → 49% in 6 mo49%
Analyst prior · editorial share 82% of the class40%
Pooled · weight 79%34%
Crowd — no liquid market
Reserve 3% · no extremizing (×1.0)34%
Published33%

The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.

The butterfly cascade

How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.

Resolution timeline — how this probability is moving

Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 0–6 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.

loading the timeline…

What it would mean

If this plays out, it is a risk-off shock. After the November 2026 suspension lapses, Beijing reinstates and widens synthetic and spherical graphite license controls, choking Western anode makers. :: The trigger decomposes into signed root‑shocks — Trade tension ▲ · Industrial demand ▲ — which propagate through our causal graph to the markets below.

If it happens — the markets it would move

Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.

MarketClassProjected move
1Nasdaq 100 NDXon Hyperliquid 📈 chartIndex▼ -2.4%
hist -1.72–-0.94% · other way +1.81% (n=11)
2Semiconductors SMHon Hyperliquid 📈 chartEquity▼ -2.3%
hist -1.9–-1.08% · other way +2.75% (n=11)
3Nvidia NVDAon Hyperliquid 📈 chartEquity▼ -2.0%
hist -2.38–+0.4% · other way +10.49% (n=11)
4TSMC TSMon Hyperliquid 📈 chartEquity▼ -1.9%
hist -3.35–+0.45% · other way +4.87% (n=11)
5Alibaba BABAon Hyperliquid 📈 chartEquity▼ -1.5%
hist -2.67–+0.25% · other way -5.17% (n=8)
6Tech sector XLK 📈 chartEquity▼ -1.6%
hist -1.43–-0.46% · other way +2.57% (n=11)
7AMD AMDon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.87–+0.68% · other way +7.06% (n=11)
8Broadcom AVGOon Hyperliquid 📈 chartEquity▼ -1.5%
hist -2.05–+0.75% · other way +2.05% (n=9)
9Micron MUon Hyperliquid 📈 chartEquity▼ -1.5%
hist -4.1–+1.26% · other way +7.93% (n=11)
10Marvell MRVLon Hyperliquid 📈 chartEquity▼ -1.5%
hist -1.33–-0.39% · other way +12.35% (n=11)
11ASML ASMLon Hyperliquid 📈 chartEquity▼ -1.4%
hist -3.89–+1.31% · other way +2.4% (n=11)
12Chinese yuan CNY 📈 chartFX▼ -1.1%
hist -0.84–-0.35% · other way -0.17% (n=10)
13Qualcomm QCOMon Hyperliquid 📈 chartEquity▼ -1.1%
hist -3.5–+1.07% · other way -0.53% (n=11)
14Intel INTCon Hyperliquid 📈 chartEquity▼ -0.8%
hist -9.6–+0.13% · other way -1.21% (n=11)

Probable recommendation

If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
Cash / hedgeRaise cash and hold the long hedges above; this scenario is net risk-off.
For a common-man portfolio: A typical stock-heavy portfolio is at risk. Consider trimming equities, raising cash, and a small cash hedge.
Also moves (not yet on Hyperliquid): Tech sector -1.6% · Chinese yuan -1.1% · Aussie dollar -0.5% · Turkish lira -0.4% · Indian rupee -0.3%

Why we may diverge from history

Trust the cascade short on MSTR: the LONG history is BTC-bull contamination — the +65%/+40% prints are April-2025 tariff windows in a crypto bull, with no graphite-anode channel to MSTR at all.

Historical precedent — what analogous events actually did

Across 23 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.

Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03 Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10 Trump's 50% copper tariff sends Comex copper to a record 2025-07 China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04 Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08 India slashes gold import duty from 15% to 6% in 2024 budget 2024-07 Gold closes above $2,000/oz for the first time 2020-08 Chinese yuan breaks 7 per dollar; US names China manipulator 2019-08 North Korea sixth nuclear test 2017-09 North Korea 'fire and fury' nuclear scare 2017-08 Mexican peso crash on Trump 2016 win 2016-11 Gold futures velocity-logic flash crash 2014-01 Gold all-time peak of $1,921/oz 2011-09 Egyptian revolution / Mubarak uprising 2011-01 Soviet August coup attempt against Gorbachev 1991-08 Chernobyl disaster 1986-04 Silver Thursday 1980-03 Gold peaks at $850 1980-01 Iran hostage crisis / US freezes Iranian assets 1979-11 Three Mile Island partial meltdown 1979-03 1979 Iranian Revolution oil shock 1979-01 Nixon Shock 1971-08 Smoot-Hawley clears the US House 1929-05
AssetHistory saysAbnormal (20d · 5d)HitnConfidencevs cascade
INTC INTCSHORT-7.1% · 5d -2.9%89%17 0.73✓ matches cascade
TRY TRYSHORT-1.9% · 5d +0.3% ↺ fades79%14 0.43✓ matches cascade
XCU XCUSHORT-4.0% · 5d -0.7%72%14 0.39✓ matches cascade
GBPUSD GBPUSDLONG+0.3% · 5d +0.1%72%14 0.35⚠ differs
ETH ETHSHORT-3.9% · 5d -4.5%71%8 0.33✓ matches cascade
CNY CNYSHORT-0.1% · 5d -0.1%66%14 0.29✓ matches cascade
Volatility VIXLONG+9.2% · 5d +0.6%68%15 0.29✓ matches cascade
Gold XAULONG+0.4% · 5d +0.1%66%14 0.28·
KWEB KWEBSHORT-3.2% · 5d -2.8%68%12 0.26✓ matches cascade
USDJPY USDJPYSHORT-0.5% · 5d -0.5%66%14 0.26⚠ differs
QCOM QCOMSHORT-2.8% · 5d -3.2%66%14 0.22✓ matches cascade
US dollar DXYSHORT-0.1% · 5d +0.2% ↺ fades60%22 0.18⚠ differs
COIN COINSHORT-9.1% · 5d -1.2%62%6 0.17✓ matches cascade
Bitcoin BTCSHORT-2.8% · 5d -1.4%61%11 0.16✓ matches cascade

Why this probability

Beijing's pattern is to reinstate/widen export controls after suspensions lapse; graphite a live lever. A base‑rate‑anchored prior, continuously scored against what actually happens — not a forecast.

Methodology. Probability and impact are anchored to history and scored against what actually happens — wins and losses, in public, at Reality Check. Crowd odds live from Polymarket & Kalshi. By Vikas Singh, Quantitative Strategist. Updated 2026-07-03.