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.

Read More: China quietly issues 2025 rare earth quotas