Chinese authorities question metals bosses in smuggling probe

Chinese authorities have questioned the heads of some of the country’s leading metals merchants and producers as part of an intensifying effort to crack down on critical minerals smuggling, according to people familiar with the situation.

Companies involved in producing and trading minor and strategic metals with military and high—tech applications have been among those called in, the people said. They asked not to be named as the matter is sensitive.

There is no indication that the executives are accused of wrongdoing by Chinese authorities, who can and do call on senior businessmen to assist in high-profile investigations when required. But the interviews, which involve multiple companies, point to a widening probe and to Beijing’s redoubled efforts to manage exports of key materials, even during a pause in trade tensions with the US.

China dominates global production, and especially processing, of critical minerals. Authorities have sought to tighten control over illicit metal sales in recent months, partly to ensure that it makes the most of that industrial clout in any negotiations with Washington.

Beijing’s grip on strategic metals has been key to efforts to build up leverage even before US President Donald Trump launched his aggressive stance on tariffs. China had already begun imposing restrictions on overseas sales of some key minerals like gallium, germanium and antimony, widening that to others including bismuth, tungsten and some rare earths earlier this year.

Those curbs have prompted redoubled efforts from domestic and overseas criminals to spirit metal out of the country — and an official response. China’s commerce ministry has said in public statements that it would mandate officials to tighten checks. The ministry did not immediately respond to a request for comment on Wednesday.

China said last week that it planned to enhance its “full-chain control”, tightening supervision of the industry from mining and smelting to transportation and sales.

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