China's Ministry of State Security accused foreign intelligence agencies on Friday of attempting to steal rare earth resources, vowing to intensify efforts to combat espionage and infiltration targeting the country's critical mineral industry.

China's spy agency stated on WeChat that foreign intelligence services and their collaborators had worked with "domestic lawbreakers" to "steal" rare earth-related items, warning that such actions severely threaten national security, though it did not identify any specific country.

The Chinese Ministry revealed that it had uncovered efforts by an unidentified country to evade export controls by relabeling shipments, falsifying customs documents, and rerouting goods through intermediary nations to conceal their ultimate destination.

China restricts rare earths exports in response to tariffs

With an annual production of 270,000 tonnes, China currently dominates the rare earths market by accounting for 90% of global refining capacity, while the US Geological Survey identifies 50 minerals as critical resources, including all 17 rare earth elements, and estimates that approximately 60% of the world's total reserves are located within Chinese territory.

Reuters exclusively reported this month that unusually large amounts of antimony, a key metal for batteries, semiconductors, and fire retardants, were allegedly rerouted through Thailand and Mexico before reaching the United States following China's imposition of export bans targeting US buyers.

China expanded its export controls in early April by adding multiple rare earth elements and associated magnets to its restricted list as a countermeasure against US trade tariffs, a move that disrupted international supply chains crucial for manufacturing electric vehicles, robotics, and defense equipment while causing overseas automakers to halt some production lines due to material shortages.

Rare earth exports from China increased by 32% in June compared to the previous month, suggesting that recent agreements between Washington and Beijing to facilitate the trade of these critical minerals may already be yielding positive results.