CHINA SPY AGENCY ACCUSES FOREIGN AGENTS OF SMUGGLING RARE EARTH MATERIALS
China’s top intelligence agency has accused unnamed foreign operatives of orchestrating an elaborate smuggling network to illegally extract and traffic rare earth materials, escalating geopolitical tensions over control of critical minerals. The Ministry of State Security (MSS), in a rare public statement, alleged that foreign spies have been working with domestic actors to smuggle strategic resources out of the country under false commercial pretenses.
Rare earth elements (REEs), a group of 17 minerals crucial to the production of high-tech devices, electric vehicles, wind turbines, and advanced weaponry, are a tightly controlled sector in China. As the world’s leading producer and processor of these materials, China has increasingly viewed rare earths not only as economic assets but as strategic national resources that must be protected from exploitation by foreign powers.
According to the MSS, intelligence officials uncovered a network operating in border regions and coastal provinces that was secretly moving rare earth concentrates and semi-processed materials out of China, often through mislabeling and illegal shipments hidden among bulk goods. The suspects allegedly used front companies and falsified customs declarations to bypass strict export controls.
“Foreign intelligence agencies are manipulating some Chinese individuals and companies, luring them into criminal activities that undermine China’s national resource security,” the statement read. “These acts seriously endanger our industrial advantage and threaten national security.”
Though no specific country was named, state-run media suggested that Western governments may be behind the alleged plot, pointing to increasing international interest in diversifying rare earth supply chains and reducing reliance on Chinese exports. Some analysts believe the timing of the announcement may be linked to recent U.S. and EU moves to boost domestic rare earth production and restrict Chinese access to advanced technology.
The MSS said that several suspects had been detained, and investigations were ongoing. It also warned Chinese businesses to be cautious when dealing with foreign entities in sensitive industries and called for “heightened vigilance” against espionage disguised as trade or investment.
The revelation has intensified already-fraught tensions between China and the West over access to critical materials and technological self-reliance. The United States, Japan, and several European countries have all launched initiatives to reduce dependence on Chinese rare earths, citing national security concerns. In response, China has tightened its export rules and expanded the role of state-owned enterprises in overseeing rare earth mining and trade.
Experts say the MSS statement signals a shift in how China perceives foreign interest in its resources—not merely as economic competition, but as an intelligence and security threat. “This framing allows China to respond not just with commercial measures, but with counterintelligence tools and national security laws,” said Lin Zhang, a political economy professor at Beijing University.
The accusations also come amid broader efforts by Beijing to root out espionage, both foreign and domestic. China recently revised its anti-espionage law, expanding the definition of spying and increasing penalties for violators. Analysts warn that these developments could make foreign business operations in China even more difficult, particularly in sectors considered strategically sensitive.
As the investigation continues, Chinese authorities have vowed to increase surveillance of rare earth facilities and ports, and promised severe punishment for those found guilty of aiding foreign agents in exploiting China’s critical minerals.