In recent developments, China has declared a vigorous campaign against the smuggling of strategic minerals, which it perceives as a significant threat to national security and economic development. The country's Ministry of Commerce has announced enhanced law enforcement measures aimed at curbing illegal outflows of minerals essential for various industries, including technology and manufacturing . This initiative is particularly focused on combating practices such as false declarations and third-country transshipments that have been exploited by smugglers to bypass stringent export controls .
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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