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China pledges to crack down on illicit exports of rare earths, urges U.S. to lift more trade controls
China pledges to crack down on illicit exports of rare earths, urges U.S. to lift more trade controls

CTV News

time2 days ago

  • Business
  • CTV News

China pledges to crack down on illicit exports of rare earths, urges U.S. to lift more trade controls

Visitors walk in front of a CATL Naxtra battery. It is seen at a CATL booth during the 3rd China International Supply Chain Expo at the China International Exhibition Center, in Beijing, China, Friday, July 18, 2025. (AP Photo/Mahesh Kumar A.) BANGKOK — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties U.S. President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said. Elaine Kurtenbach, The Associated Press

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

Yahoo

time2 days ago

  • Business
  • Yahoo

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

BANGKOK (AP) — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

The Independent

time2 days ago

  • Business
  • The Independent

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

China 's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls
China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

Associated Press

time2 days ago

  • Business
  • Associated Press

China pledges to crack down on illicit exports of rare earths, urges US to lift more trade controls

BANGKOK (AP) — China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production. In a report published Friday in the state-run newspaper Global Times, the Ministry of State Security said foreign 'espionage and intelligence agencies' were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin. In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as 'solder paste,' mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said. It referred only to an unnamed 'certain country' that it said lacked the capacity to make and refine its own rare earths. Investigations had found Chinese criminals were involved, exploiting shipping and delivery channels to evade controls on exports of the materials used in many high-tech applications including electric vehicle batteries, it said. The crackdown followed a report by Reuters earlier this month detailing how rare earths were being transshipped to the U.S. via Thailand and Mexico. China is the main source for many strategically vital rare earths and it has moved to slow exports of such minerals in retaliation for steep import duties President Donald Trump has imposed on Chinese goods since he returned to the White House and launched his crusade to overturn a global trading system he says is unfair to the United States and its workers. That followed an earlier series of restrictions by Beijing on exports of such materials as gallium, germanium, antimony and tungsten in response to trade friction with the administration of then-President Joe Biden. In April, Beijing imposed permitting requirements on seven rare earth elements, under a Chinese law that applies to all exports, not just those bound for the U.S. market. With the permitting process taking 45 days, the new requirement caused a pause in shipments, threatening to disrupt production of cars, robots, wind turbines and other high-tech products in the U.S. and around the world. The U.S., meanwhile, added to restrictions on exports of advanced technologies to China. Rare earths have remained at the center of China-U.S. talks aimed at staving off huge tariff increases that were postponed in May to allow time for negotiations on a broader trade agreement. The deadline for reaching a deal is Aug. 12. An agreement announced in late June did not remove China's permitting requirement on rare earths, but Beijing agreed to flexibility in dialing up or down the approval process as needed. Computer chips are another key bone of contention. The Chinese Commerce Ministry said Friday that it had taken note of a decision by the Trump administration to lift restrictions on exports of key semiconductors used in artificial intelligence made by Nvidia and its rival Advanced Micro Devices. In April, the Trump administration announced it would restrict sales of Nvidia's H20 chips to China — as well as MI308 chips from AMD. But Commerce Ministry spokesman Wang Wentao said restoring healthy trade ties will require more action by Washington. U.S. export controls on Ascend chips made by Chinese tech giant Huawei Technologies have hurt the interests of Chinese companies, Wang told reporters in Beijing. 'We hope that the United States and China will meet each other halfway and correct their wrong practices through equal consultation, create a good environment for mutually beneficial cooperation between enterprises of both sides, and jointly maintain the stability of the global semiconductor production and supply chain,' he said.

China Spy Agency Accuses Foreign Agents of Stealing Rare Earths
China Spy Agency Accuses Foreign Agents of Stealing Rare Earths

Yahoo

time2 days ago

  • Business
  • Yahoo

China Spy Agency Accuses Foreign Agents of Stealing Rare Earths

(Bloomberg) -- China's spy agency has accused overseas intelligence agencies of stealing controlled rare earth materials, reiterating its intent to curb smuggling even as Beijing agrees to review applications to export the vital industrial resource after trade talks with the US. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say Mumbai Facelift Is Inspired by 200-Year-Old New York Blueprint Without naming any country, the Chinese Ministry of State Security accused foreign entities of orchestrating the trafficking of these items, which Beijing sees as a strategic asset and has used as a bargaining chip in tariff negotiations with Washington. 'In recent years, foreign espionage and intelligence agencies and their agents have attempted to collude with and incite unlawful people in the country to steal our rare earth-related items by means of mail delivery, posing a serious danger to our national security,' the ministry said in a WeChat post Friday. China leveraged its dominance in producing these metals and rare earth magnets in the trade war with the US, which relies on Chinese supply to make a wide range of products including electric vehicles. Ford Motor Co. had to cut output at one of its plants after Beijing tightened export controls, and the curbs have deepened tensions with the European Union, which similarly depends on exports from China. The security ministry claimed to have foiled an attempt by an unnamed country to illicitly acquire rare earths for stockpiling. This involved a contractor mislabeling parcels as 'not originally made in China' and misrepresenting product content and ingredients, according to the post. The MSS also detailed other alleged smuggling tactics, such as hiding rare earth powders in ceramic tile ingredients or disguising them in water bottles labeled as 'machinery parts' for export. The ministry urged citizens to report suspicious activities related to rare earth resources. China and the US last month confirmed a deal to suspend drastic tariffs after Beijing vowed to process export licenses and the US agreed to lift its own controls on technology including some advanced AI chips. Signs of easing tensions have raised the chance of a broader deal and a meeting between President Donald Trump and Chinese leader Xi Jinping this year. What the Tough Job Market for New College Grads Says About the Economy How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All Godzilla Conquered Japan. Now Its Owner Plots a Global Takeover Forget DOGE. Musk Is Suddenly All In on AI Why Access to Running Water Is a Luxury in Wealthy US Cities ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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