China’s state security agency has pledged to crack down on illicit exports of rare earth minerals, which it says threaten national security. The move comes just weeks after Beijing and Washington agreed to make it easier for American firms to obtain the materials, critical for manufacturing and computer chip production.
According to a report published in Global Times, foreign “espionage and intelligence agencies” are colluding to steal rare earths-related goods by repackaging and relabeling them. Chinese criminals are exploiting shipping and delivery channels to evade controls on exports of these materials used in high-tech applications like electric vehicle batteries.
China is the main source for many strategically vital rare earths, and the country has moved to slow exports of such minerals in response to steep import duties imposed by President Donald Trump. Beijing had earlier imposed permitting requirements on seven rare earth elements, which caused a pause in shipments and threatened to disrupt production of high-tech products worldwide.
The US and China are engaged in trade talks aimed at staving off huge tariff increases. The Chinese Commerce Ministry said it has taken note of the decision to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and AMD. However, the ministry’s spokesperson, Wang Wentao, stated that restoring healthy trade ties requires more action from Washington.
The US export controls on Ascend chips made by Huawei Technologies have hurt Chinese companies’ interests, Wang said. China hopes to meet the US halfway and correct its wrong practices through equal consultation to create a good environment for mutually beneficial cooperation between enterprises of both sides.
Source: https://eu.detroitnews.com/story/business/2025/07/18/china-pledges-to-crack-down-on-illicit-exports-of-rare-earths/85279172007