China Vows To End Illicit Rare Earth Exports

China’s state security agency has pledged to crack down on illegal rare earth mineral smuggling, saying the trade poses a threat to national security.

Reports revealed that rare earths were being transshipped to the U.S. via Thailand and Mexico to avoid Chinese export controls. I Photo: Xinhua

The announcement comes just weeks after Beijing and Washington agreed to streamline American access to the critical materials, which are essential for manufacturing and chip production, Associated Press' (AP) Elaine Kurtenbach reported.

In a statement published Friday in the state-run Global Times, the Ministry of State Security (MSS) accused foreign “espionage and intelligence agencies” of stealing rare earth-related goods by relabeling and repackaging them to disguise their Chinese origin.

Investigators reportedly uncovered domestic involvement as well, with Chinese criminals exploiting shipping and logistics systems to bypass export restrictions.

These rare earths are used in a wide range of high-tech products, including electric vehicle batteries, semiconductors, and defense systems.

The crackdown follows a Reuters report earlier this month revealing that rare earths were being transshipped to the U.S. via Thailand and Mexico to avoid Chinese export controls. China remains the primary global supplier of many strategically vital rare earths.

The move also comes in response to escalating trade tensions.

Since returning to the White House, President Donald Trump has imposed steep import tariffs on Chinese goods, vowing to overhaul what he calls a “broken” global trading system that disadvantages American workers.