China steps up to protect trade war edge as rare earth smugglers get creative

A zero-tolerance crackdown has swooped up illegal traders, and foreign violators will be added to the country’s export blacklist, according to the Ministry of Commerce

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Tractors dig at a rare earth mine in China’s Jiangxi province. The country’s dominance in the rare earth supply chain has become a trump card in trade negotiations with the United States. Photo: AP

Published: 10:00pm, 24 Jul 2025Updated: 12:01am, 25 Jul 2025

Beijing has further institutionalised its export-control regime on critical minerals – widely considered a trump card held by Chinese authorities in trade negotiations with the US – as officials intensify crackdowns on smuggling.

In the two months since China launched a campaign to combat illegal exports of strategic minerals, authorities have identified attempts by “a small number of lawbreakers” to circumvent regulations through various means, leading to escalating risks of illegal technology outflows, said He Yadong, a spokesman for the Ministry of Commerce, at a press conference on Thursday.

“Government agencies have strengthened interdepartmental coordination, adopting a zero-tolerance approach and taking forceful measures against the smuggling and illegal export of strategic minerals,” He said.

“A number of illicit export cases have been investigated, with multiple smuggling suspects apprehended.

“These concerted efforts have demonstrated resolute enforcement and established a powerful deterrent effect.”

With its stranglehold on the global supply chain for critical minerals, China has been increasingly leveraging that dominance to exert influence in geopolitical matters.

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