Rare earths: China accuses foreign intelligence services of smuggling

According to Chinese sources, foreign intelligence services have attempted to smuggle rare earths out of the People's Republic. According to Chinese state security, the agents have sought to collaborate with "lawbreakers" within the country in recent years to steal the raw materials, which are important for industry, by mail order.

According to the report, authorities discovered that packages containing "non-Chinese origin" or other goods were being falsely declared. Intelligence agencies instructed individuals in China to declare "soldering grease" or other common products instead to circumvent export controls. The metals were also concealed in other products, such as plastic dolls or water bottles.

China is the world's leading producer of rare earths

The agency did not disclose which intelligence agencies were involved or when exactly the incidents were uncovered. According to the State Security Service, the "routes for illegal export" were interrupted.

China had long imposed export controls on the export of important raw materials. The People's Republic is the world's leading producer of many of these metals. For example, in October 2023, Beijing restricted the export of graphite, which is important for battery production.

In April, as part of the trade dispute with the United States , China imposed controls on the export of seven rare earth elements and magnets made from them. Beijing justified the measure by arguing that the raw materials were goods for both civilian and military use. In a complex application process, companies had to provide detailed evidence of their end use.

Recently, the Ministry of Commerce in Beijing also placed technologies important for the production of electric car batteries and the processing of lithium on an export control list. Anyone wishing to transfer these technologies from China through trade or economic cooperation must apply for an official license, according to a statement. (With dpa)