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.
In April, the country imposed export controls on
seven rare earth elements and magnets in retaliation for US tariff hikes, and companies have since been required to obtain a government permit before shipping those products overseas.
The move led to a plunge in China’s overall shipment of rare earth permanent magnets – an essential component for a variety of products, including electric vehicles, wind turbines, smartphones and aerospace vessels, until it saw a rebound in June, when Beijing announced that it would speed up the approval of export permits following
trade negotiations with US officials in London.
