China targets smugglers to strengthen export controls on critical minerals

Chinese authorities have pledged to crack down on critical minerals smuggling in a detailed plan that builds upon recent restrictions on rare earths amid a trade war with the United States.

Officials from the Commerce Ministry, Public Security Ministry, General Administration of Customs and Supreme People’s Court among others gathered in Shenzhen on Friday to discuss export controls on the strategic resources tied to national security and developmental interests, according to an official statement.

“Since the implementation of export controls on critical minerals such as gallium, germanium, antimony and tungsten, some foreign entities colluded with onshore individuals acting illegally to work around restrictions by using new tactics.”

“The work of cracking down on smuggling is an imminent and important task, as the move can avoid illegal strategic critical minerals from flowing out of the country and protect the stability of the industry’s supply chains.”

Rajiv Biswas, CEO of research firm Asia-Pacific Economics in Singapore, said China aims to strengthen the enforcement of recent restrictions on a range of critical minerals essential for the US defence industry.

Beijing restricted shipments of antimony, gallium and germanium to the US last year, putting pressure on the supply chain for hi-tech hardware. In February this year, China’s Ministry of Commerce added five more metals – including tungsten, an ingredient used to make ammunition – to its export controls.

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