China is ramping up its efforts to clamp down on the smuggling of strategic minerals, a move underscored by the nation’s recent announcements and coordinated government actions. These minerals, vital to national security and economic development, have become a focal point amid concerns over illegal exports and foreign espionage.
On Saturday, July 19, 2025, Chinese authorities declared a renewed and intensified campaign targeting the smuggling of strategic minerals. This announcement came during a meeting convened by the national export control work coordination mechanism in Nanning, located in the Guangxi Zhuang Autonomous Region of South China. The gathering united key state organs, including the Ministry of Commerce (MOFCOM), the Ministry of Public Security, and the General Administration of Customs, highlighting a comprehensive government approach to the issue.
The Ministry of Commerce’s official statement emphasized that while the "zero-tolerance" campaign against smuggling has already yielded initial success—resulting in multiple investigations and arrests—challenges persist. The ministry noted that "cases of smuggling by a small number of criminals for their own selfish interests and collusion between domestic and foreign parties are still occurring." Smugglers are increasingly sophisticated, using covert methods such as false declarations and transshipment through third countries to evade detection.
To combat these evasive tactics, the government is urging all relevant departments to maintain high-pressure inspections and crackdowns. Key measures outlined include the establishment of a joint enforcement coordination center for dual-use export controls, swift investigation and prosecution of major violations, and proactive guidance to exporting companies. These companies are being warned to conduct thorough due diligence to ensure that strategic minerals and related technologies do not end up diverted for military use or fall into the hands of unauthorized users.
This crackdown aligns with China’s broader national security priorities. The state security ministry recently accused foreign spy agencies of attempting to "steal" rare earth minerals, underscoring the strategic importance of these resources. China, the world's largest supplier of numerous strategic minerals, began imposing export curbs in 2023 on materials critical to sectors such as chipmaking, energy transition, and defense. The tightened controls have included gallium, germanium, antimony, tungsten, and various rare earths.
In December 2024, MOFCOM tightened export controls on gallium, germanium, antimony, and superhard materials destined for the United States. By April 2025, these controls expanded to include seven types of medium and heavy rare earths. These moves reflect Beijing's determination to safeguard its strategic mineral resources amid global geopolitical tensions and economic competition.
Parallel to these security-focused measures, China is also pushing to bolster its economic strength through trade and innovation. On July 18, 2025, a day before the crackdown announcement, Commerce Minister Wang Wentao outlined ambitious plans for the 15th Five-Year Plan period (2026-2030). Wang emphasized intensifying efforts to promote high-quality trade development, deepen international cooperation, and accelerate innovation to boost exports.
China’s foreign trade has seen remarkable growth in recent years. According to the Ministry of Commerce, foreign trade reached $6.16 trillion in 2024, marking a 32.4 percent increase from 2020. This growth has sustained China’s status as the world’s largest trading nation for the eighth consecutive year. Wang noted that Chinese exporters have shown resilience by upgrading products, enhancing technological content, expanding into new markets, and exploring innovative business models.
The country’s foreign trade-related production and supply chains have become more complete, flexible, and efficient, strengthening China’s ability to navigate external uncertainties. Wang also dismissed any attempts to forcibly "decouple" economic and trade ties between China and the United States, stating that such efforts "are destined to fail." He highlighted that despite fluctuations, cooperation remains anchored in economic fundamentals and shared interests.
China International Trade Representative Li Chenggang added context by pointing out that the global economic order is under strain due to rising unilateralism and protectionism. In response, China has reaffirmed its commitment to the multilateral trading system and expanded its network of high-standard free trade agreements. Notably, negotiations on the Version 3.0 China-ASEAN Free Trade Area agreement were completed earlier in 2025, incorporating rules on emerging sectors such as the digital and green economy.
Foreign investment continues to play a critical role in China’s economic development. By the end of June 2025, China utilized $708.73 billion in foreign investment during the 14th Five-Year Plan period, achieving its target six months ahead of schedule. Vice-Minister of Commerce Ling Ji highlighted that foreign-invested companies contribute one-third of China’s foreign trade, one-quarter of its industrial added value, and have created over 30 million jobs.
To further encourage global capital inflows, China introduced 12 targeted measures on July 18, 2025, designed to support foreign companies reinvesting profits domestically. These policies, jointly issued by the National Development and Reform Commission alongside six other government bodies, include flexible land use, tax incentives, streamlined procedures, financial support, and improved services aimed at fostering high-quality foreign reinvestment projects.
One example of the benefits of such policies is Jiangsu Mobis Automotive Parts Co Ltd, a subsidiary of South Korea’s Hyundai Mobis Co, based in Yancheng, Jiangsu province. Since joining the Authorized Economic Operator (AEO) program in 2024—a World Customs Organization initiative that fosters partnerships between customs authorities and businesses to enhance supply chain security and streamline trade—the company has expanded its global reach. Zheng Yinyin, a manager at the company’s foreign trade unit, noted, "Since joining the program, we have expanded to become a global supplier of components to more automakers in Japan and Southeast Asia." The company’s exports surged 44.5 percent year-on-year to 430 million yuan ($60 million) between January and June 2025.
Despite these positive trade developments, China remains vigilant about protecting its strategic assets. The commerce ministry’s recent statements underscore a "zero-tolerance" stance toward smuggling and illegal exports of strategic minerals. The government’s coordinated enforcement efforts aim to prevent the outflow of resources that are crucial not only to economic growth but also to national security.
In a time of growing geopolitical tension and economic uncertainty, China’s dual approach—strengthening trade and innovation while rigorously safeguarding strategic minerals—reflects a nuanced strategy to secure its place as a global economic powerhouse. As the 15th Five-Year Plan unfolds, the world will be watching how these policies shape China’s trade dynamics and security landscape in the years to come.
