China has intensified its crackdown on the smuggling of strategic minerals, a move driven by national security concerns and economic interests. Key minerals such as gallium, germanium, antimony, and graphite are critical for various high-tech industries and military applications . The Chinese government has launched a comprehensive campaign involving multiple ministries aimed at eradicating illegal practices such as fraudulent reporting and third-country transshipments. This initiative is particularly important given the global trade tensions that have prompted China to tighten its export controls to safeguard these vital resources.
The Ministry of Commerce statement came during a high-level export-control meeting in Nanning, capital of Guangxi Zhuang autonomous region – an area of southern China rich in strategic mineral reserves. Multiple ministries attended the meeting, which was organised by the national coordination office for export control.
Officials at the meeting said the situation in combating the smuggling of strategic minerals “remained severe”. They said plans were under way to set up a joint enforcement and coordination centre for export controls on dual-use items for both civilian and military use, as a special operation to crack down on smuggling continued.
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.
China exported 3,188 tons of rare earth permanent magnets last month, up 157.5% from 1,238 tons in May, although the June volume was still 38.1% lower than the corresponding month in 2024.
Shipments of magnets are likely to recover further in July as more exporters obtained licences in June, analysts said.
The urgency of this crackdown is underscored by accusations from the State Security Ministry regarding foreign attempts to pilfer rare earths . As the world's leading supplier of these strategic minerals, China's efforts reflect a broader concern about maintaining control over essential materials that underpin technological advancements. The Commerce Ministry's commitment to enhancing law enforcement measures demonstrates an acknowledgment of the complexities involved in addressing deceptive smuggling methods and preventing illegal outflows .
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