China is conducting a nationwide campaign against the illegal export of strategic minerals, according to a Ministry of Commerce press conference on July 10.
For the sake of national security and State interests, in 2024 China tightened export controls on strategic minerals like rare earths, tungsten and graphite, which are important for many high-tech industries like semiconductors, renewable energy and defense manufacturing. China has major reserves of strategic minerals and dominates their processing and supply. Data from the International Energy Agency showed that China possessed more than 60 percent of rare earth reserves in 2023 and controlled over 90 percent of their processing. The tightened export controls have caused price rises on the global market which in turn has driven an increase in smuggling.
Strategic minerals can be smuggled by faking customs reports, melting rare earths into steel beams, or by reselling after the minerals are exported to a middle country with less strict export controls. The latest campaign will focus on the key links and target underground smuggling chains and networks.
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