China ramps up crackdown on strategic mineral smuggling amid U.S. tariff escalation

China launched a sweeping campaign to crack down on the smuggling of strategic minerals, including transshipment through third-party countries, to reinforce control over critical raw materials.

The campaign marked China's sharpest response to suspected attempts by foreign buyers to sidestep export controls amid the tariff war launched by the United States.

According to a statement by the national export control work coordination office, a high-level on-site meeting was held to tighten export controls and curb illegal outflows of critical resources, such as gallium, germanium, antimony, tungsten, and medium and heavy rare earths, which are vital to global supply chains in semiconductors, defense technologies and green energy.

The meeting joined several major ministries, including the Ministry of Commerce, the Ministry of Public Security and the Ministry of State Security on Friday in the southern tech hub of Shenzhen, Guangdong province.

Authorities warned that since China implemented export controls on strategic minerals, some foreign entities have colluded with domestic illegal operators to bypass regulations using increasingly sophisticated smuggling tactics. These include false declarations, concealment in shipments and transshipment through third-party countries.

The meeting emphasized that combating such smuggling is essential to safeguarding national security and economic interests, while also ensuring the stability of supply chains and supporting compliant trade.

China called for strengthened front-end oversight, enhanced inter-agency coordination and targeted enforcement against conventional evasion methods, it has also pledged to speed up investigations and publicize major violations, as well as dismantle the networks behind the smuggling operations to deliver a strong deterrent, according to the meeting.

Authorities also urged during the meeting to speed up the development of intelligent enforcement systems and improve cross-regional and cross-departmental cooperation.

Closer customs collaboration between the Chinese mainland, Hong Kong and Macao was also highlighted as key to achieving export control goals.