How foreign spies used the post to smuggle China’s rare earths

The ministry said, as reported by SCMP, that rare earth materials were hidden in mannequins and even mixed with ceramic tiles to avoid detection. Other shipments falsely declared high-purity rare earths such as dysprosium and terbium as less valuable goods like nickel powder.

“Rare earth-related items are a strategic national resource and can be applied to military and civilian use,” the ministry said, urging people to report any suspicious activity.

The agency did not name the country behind the operations but claimed it was a nation that “could not produce its own rare metals” and was trying to secure supply by illegal means.

China steps up controls

According to SCMP, the ministry said it had worked with other departments to block these smuggling channels and had “effectively safeguarded China’s resources and national security”.

China is the top producer of rare earths, mining around 70 per cent of the global total and handling over 90 per cent of the processing of heavy rare earth elements, which are used in advanced military systems and electronics.

Export limits targeting US and allies

The SCMP report noted that Beijing has increasingly used its control over rare earths in trade and security matters. In 2023, China introduced new export rules requiring permission to send out several types of gallium- and germanium-based materials. In December, it banned exports of those minerals to any US military users.

In April this year, further controls were introduced for seven types of rare earths and related products, including magnets and finished items. The move followed rising demand and a surge in rare earth exports, which jumped 60 per cent in June to reach the highest monthly level since 2009.

The ministry has previously warned of foreign espionage tactics, including the use of artificial intelligence, email hacking, and attempts to recruit Chinese students online.

The statement did not say whether anyone had been arrested, but called on the public to remain alert and to report any potential security threats.