China vows ‘zero tolerance’ for smuggling of critical minerals
Chinese authorities vowed “zero tolerance” for the smuggling of strategic minerals and said it would strengthen law enforcement to crack down on illegal shipments and the unauthorized transfer of related technology.
At a meeting on Saturday, China’s coordination office on export control highlighted recent cases of critical mineral smuggling involving false declarations and transshipments through third countries, according to the state broadcaster CCTV.
China has leveraged its dominance in the production of critical minerals and rare earth magnets amid its trade war with the US. All shipments now need licenses from the Ministry of Commerce, impacting global supplies, with governments worldwide urging Beijing to boost flows. The Chinese government said it is speeding up approvals.
Saturday’s meeting was attended by the ministries of commerce, public security and state security, top court officials and prosecutors, as well as officials from the customs and postal agencies. Authorities were urged to “resolutely prevent” transshipments and blacklist companies that attempt to circumvent export controls.
Exporters will also be given guidance on due diligence to prevent products from reaching defense-related end users.
Separately, China’s spy officials have accused overseas intelligence agencies of stealing controlled rare earth materials by means of mail delivery. It claimed to have foiled an attempt by an unnamed country to illicitly acquire rare earths for stockpiling
China spy agency accuses foreign agents of stealing rare earths
China’s spy agency has accused overseas intelligence agencies of stealing controlled rare earth materials, reiterating its intent to curb smuggling even as Beijing agrees to review applications to export the vital industrial resource after trade talks with the US.
Without naming any country, the Chinese Ministry of State Security accused foreign entities of orchestrating the trafficking of these items, which Beijing sees as a strategic asset and has used as a bargaining chip in tariff negotiations with Washington.
“In recent years, foreign espionage and intelligence agencies and their agents have attempted to collude with and incite unlawful people in the country to steal our rare earth-related items by means of mail delivery, posing a serious danger to our national security,” the ministry said in a WeChat post Friday.
China leveraged its dominance in producing these metals and rare earth magnets in the trade war with the US, which relies on Chinese supply to make a wide range of products including electric vehicles. Ford Motor Co. had to cut output at one of its plants after Beijing tightened export controls, and the curbs have deepened tensions with the European Union, which similarly depends on exports from China.
The security ministry claimed to have foiled an attempt by an unnamed country to illicitly acquire rare earths for stockpiling. This involved a contractor mislabeling parcels as “not originally made in China” and misrepresenting product content and ingredients, according to the post.
The MSS also detailed other alleged smuggling tactics, such as hiding rare earth powders in ceramic tile ingredients or disguising them in water bottles labeled as “machinery parts” for export. The ministry urged citizens to report suspicious activities related to rare earth resources.
China and the US last month confirmed a deal to suspend drastic tariffs after Beijing vowed to process export licenses and the US agreed to lift its own controls on technology including some advanced AI chips. Signs of easing tensions have raised the chance of a broader deal and a meeting between President Donald Trump and Chinese leader Xi Jinping this year.
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