China says foreign actors smuggling rare earth metals through covert shipping

China has accused foreign intelligence agencies of smuggling rare earth metals out of the country by manipulating shipping logistics and recruiting insiders, according to a statement from the Ministry of State Security.

China’s Ministry of State Security on Friday alleged that foreign agencies are exploiting delivery systems to illegally extract and stockpile rare earth elements, which are critical to global industries such as electronics, renewable energy, and defence.

In a statement, the ministry said that “a certain country lacks the capability to independently produce and refine rare metals” and is engaging in long-term accumulation through covert operations. While no country was directly named, the ministry suggested a pattern of systematic smuggling and intelligence activity targeting China’s rare earth industry.

Citing a report by the state-run Global Times, the ministry detailed how foreign operatives are attempting to recruit Chinese nationals and work with domestic contractors to “steal” rare earth resources. These efforts reportedly include repackaging and relabelling materials to conceal their Chinese origin, underreporting content, falsifying product names, dividing shipments, and modifying transport routes to bypass export restrictions.

The ministry stated that China’s security services have “acted to stop these outflows of rare earth-related items,” reinforcing the country’s strict control over a strategically vital resource.

Rare earth elements are essential in the production of electric vehicles, smartphones, military systems, and green technologies. China remains the leading global source of these materials, supplying a significant share of the world's demand.

The latest allegations highlight rising geopolitical tensions over critical mineral supply chains and Beijing’s growing efforts to safeguard its rare earth dominance amid tightening export controls and intensifying global competition.

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