Amid a global crisis surrounding rare earth elements, China has made a serious accusation. According to a media report, China’s Ministry of Defence has accused foreign intelligence agencies of smuggling rare earth elements. The revelation comes just days after China signed a trade deal with the United States, in which it agreed to reconsider relaxing export restrictions on rare earth metals.
China claims that in recent years, foreign espionage and intelligence agencies — along with their agents — have attempted to illegally steal rare earth elements and related materials by colluding with Chinese citizens. The government says these actions pose a serious threat to national security. However, the Chinese ministry did not name any specific country.
"Rare earth elements play a vital role in the production of electric vehicles, smartphones, wind turbines, and defence equipment. These elements are used to produce rare earth magnets, which are a key component in electric motors.
China Foils Smuggling Attempt
The ministry further revealed that it had thwarted an attempt by one country to illegally collect these minerals. In this case, a contractor was accused of falsifying labels on packaging to hide the true origin of the materials. The packages were falsely labelled as being manufactured outside China and contained incorrect information about their contents and chemical composition.
Intelligence agencies were reportedly using various tactics to steal rare earth elements. China has now called on its citizens to report any suspicious activities related to rare minerals immediately.
Rare Earth: A Political Weapon for China
Recently, China imposed strict restrictions on rare earth exports, triggering a worldwide shortage. China controls over 80 per cent of global rare earth production and processing. Countries struggling with this shortage are now engaging in talks with China or looking for alternative sources.
Meanwhile, China is using rare earths as a geopolitical tool, seeking to negotiate trade on its own terms. Last month, a limited agreement was reached between China and the United States, where China agreed to restart the licensing process for rare earth exports. In return, the U.S. is expected to ease certain restrictions on advanced artificial intelligence chips.
