China's Bold Crackdown on Rare Earth Smuggling Amid Trade Tensions

China's state security agency is intensifying efforts to crack down on alleged smuggling of rare earth minerals, which it views as a threat to national security. This development comes in the wake of an agreement between Beijing and Washington to facilitate American firms in accessing these vital materials from China.

The Ministry of State Security, via the Global Times, accused foreign espionage and intelligence agencies of colluding to mislabel and repackage rare earths, thus evading export controls. The report cited instances of minerals being falsely declared or hidden in non-controlled items, exploiting export channels.

This crackdown follows a Reuters report on transshipments to the US and reflects broader geopolitical tensions impacting the high-tech sector, as trade restrictions and export controls remain pivotal issues in China-US negotiations.

(With inputs from agencies.)