China’s intelligence agency hits out at foreign attempts to ‘steal’ rare earth resources

China’s Ministry of State Security on Friday accused foreign intelligence agencies of attempting to “steal” its rare earth resources, vowing to intensify efforts to combat espionage and infiltration targeting its critical mineral industry.

In a statement posted on its official WeChat account, the ministry alleged that foreign spy networks had collaborated with domestic actors to illegally obtain rare earth materials, posing a grave threat to national security. Although no specific countries were named, the ministry said it had uncovered attempts to bypass export controls through forged labels, falsified shipping documents, and transshipment—where goods are routed through third countries before reaching their final destinations.

This comes after a Reuters investigation revealed unusually large quantities of antimony—a strategic metal used in batteries, semiconductors, and flame retardants—were rerouted into the United States via Thailand and Mexico following China’s export ban on certain US shipments.

In April, Beijing expanded export restrictions on key rare earth elements and related magnets in retaliation against US tariffs. The move disrupted global supply chains for electric vehicles, robotics, and defense manufacturing, with some non-Chinese automakers facing production delays due to material shortages.

Despite this, China’s rare earth exports jumped 32% in June compared to May, possibly reflecting progress in recent US-China talks aimed at easing trade restrictions. Notably, Nvidia’s plan to resume sales of its H20 AI chips to China was reportedly part of those broader negotiations.