China on Friday accused foreign intelligence agencies of attempting to smuggle rare earth materials out of the country by exploiting shipping and delivery systems, according to a statement by the Ministry of State Security.
The ministry alleged that "a certain country lacks the capability to independently produce and refine rare metals" and is engaged in long-term stockpiling through covert means.
According to the state-run Global Times, authorities said foreign agencies were trying to recruit Chinese residents and collaborate with local contractors to "steal" rare earth items by manipulating shipping logistics.
The ministry accused a major contractor in the rare earth industry of repackaging and relabeling the materials to falsely indicate "not of Chinese origin," underreporting content levels, falsifying product names, splitting shipments into smaller units, and altering transportation routes to circumvent export controls.
"China's security services have acted to stop these outflows of rare earth-related items," the statement said.
Rare earth elements are critical in manufacturing high-tech products, including electronics, electric vehicles, military hardware, and renewable energy systems. China remains the world's dominant producer, exporter, and consumer of rare earths.
