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China Pledges to Crack Down on Illicit Exports of Rare Earths, Urges U.S. to Lift More Trade Controls

CHINA, JUL 18 – China is intensifying efforts with arrests and stricter export controls to stop rare earth mineral smuggling that threatens national security and critical high-tech industries.

  • On Friday, China's Ministry of State Security announced a crackdown on alleged rare earth minerals smuggling, saying the shipments `threaten national security`.
  • Earlier this month, Reuters reported rare earths were being transshipped via Thailand and Mexico, prompting the Ministry of State Security to investigate and reveal criminal exploitation of shipping channels after Beijing imposed new permitting requirements in April.
  • Methods included concealing minerals falsely declared as non-controlled items, labeling them as `solder paste`, and hiding them inside plastic mannequins and bottled water.
  • Spokesman Wang Wentao said US export controls on Ascend chips have hurt Chinese companies' interests, while China's Commerce Ministry noted the Trump administration's decision to lift AI chip restrictions.
  • With a deadline on August 12, 2025, and Beijing agreed to dial permitting requirements up or down after a late June pact.
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ORF.at News broke the news in Vienna, Austria on Friday, July 18, 2025.
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