China's spy agency accuses foreign agencies of smuggling rare earths

China’s Ministry of State Security has accused overseas intelligence agencies of smuggling rare earth materials, just days after Beijing agreed to review export licence applications for the sensitive metals following trade talks with the United States, Bloomberg reported citing a post on WeChat.

In a post published on its official WeChat account on Friday, the spy agency said: “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.”

While no specific country was named, the message underlined growing anxiety in Beijing over the global race to control supply chains of rare earth elements—vital for electric vehicles, smartphones, wind turbines and military equipment.

The ministry said foreign operatives were organising and financing attempts to traffic these materials, which China sees as a strategic national asset. Beijing has long used its dominance in rare earth production as a bargaining chip in its geopolitical disputes, especially with Washington.

The agency claimed it had thwarted an operation by an unnamed country to illegally acquire rare earths for stockpiling. In that case, a contractor allegedly mislabelled packages to conceal their origin, describing them as “not originally made in China” and misrepresenting both the contents and chemical composition of the materials.

According to the ministry, other attempted smuggling techniques included hiding rare earth powders in the ingredients of ceramic tiles and disguising the elements in water bottles labelled as “machinery parts” for export. The ministry also urged Chinese citizens to report any suspicious activity linked to rare earth resources.

The post comes at a time when Beijing is attempting to balance security concerns with the economic impact of its export controls. In recent months, China had tightened restrictions on shipments of rare earths, triggering global supply disruptions. In one instance, Ford Motor Co. had to scale back production at a US facility due to lack of access to Chinese rare earth magnets.

The European Union has also been drawn into the dispute. Like the US, the EU is heavily reliant on Chinese exports of rare earths, and rising trade tensions have further strained relations.

In an earlier round of retaliation against the US, China had suspended exports of rare earths in response to US President Donald Trump’s so-called “Liberation Day” tariffs. The 17 rare earth elements, which include neodymium and dysprosium, are critical to the functioning of a range of advanced technologies. China currently controls more than 80% of the global supply.

Last month, after a fresh round of negotiations, China and the US reached a limited agreement that saw Beijing promise to process pending export licence applications. In return, Washington agreed to lift some of its restrictions on sensitive technologies, including certain types of advanced artificial intelligence chips. The developments have prompted speculation of a wider deal and a possible meeting between Trump and Chinese President Xi Jinping.