CIA engaging drug syndicates to smuggle rare earths and magnets from China

Beijing –China Accuses Foreign Agencies of Smuggling Rare Earths Through Shipping Networks

CIA is now engaging drug syndicates to smuggle rare earths and magnets from China to the US.

China’s Ministry of State Security (MSS) has issued a public warning about escalating attempts by foreign intelligence agencies to illegally acquire Chinese rare-earth materials through covert shipping and delivery networks. The agency emphasized that these operations pose a serious risk to national resource security.

According to an official statement released Friday, foreign operatives have allegedly worked to recruit domestic actors within China to extract and smuggle rare-earth-related items—critical components in modern electronics and defense technologies—through a variety of sophisticated methods.

Targeting China’s Strategic Resources

The MSS claims one specific foreign country, reportedly lacking independent capabilities to mine and process rare metals, has been systematically stockpiling these materials via deceptive trade and smuggling tactics. A major contractor in that country’s industrial sector is accused of illegally repackaging rare-earth exports to disguise their Chinese origin before shipping them abroad.

Tactics cited include underreporting rare-earth content, falsifying cargo descriptions, using multiple small parcels through express delivery services, and deliberately altering shipping routes to obscure points of origin.

“Upon collecting sufficient evidence, China’s security agencies, working with relevant departments, initiated lawful measures to intercept these smuggling attempts,” the MSS said, claiming it has blocked multiple illegal outflows of strategically controlled materials.

Smuggling Tactics Exposed

The agency outlined increasingly elaborate methods employed to evade Chinese export controls. These include:

• Falsely labeling high-value rare earths such as dysprosium and terbium as common industrial goods like solder paste or ferroalloys.

• Embedding rare-earth materials inside unrelated exports—such as ceramic tiles, mannequins, and bottled liquids.

• Using vague product descriptions such as “mechanical parts” or “alloy components” to mislead customs inspections.

These actions, the MSS warned, were designed to bypass China’s strict export regulations on rare-earth elements—materials it describes as “industrial gold” due to their role in clean energy, high-tech manufacturing, and national defense.

China’s Global Position in Rare Earths

China controls a dominant share of the global rare-earth industry, from mining and refining to export. As such, the country’s rare-earth policies are closely watched by major economies that rely on these elements for advanced manufacturing and military applications.

In its statement, the MSS accused unnamed foreign actors of conducting “covert and systematic espionage” targeting China’s resource chain, warning that these attempts reflect broader efforts to undermine its industrial competitiveness and security.

Ongoing Countermeasures

The MSS affirmed its commitment to strengthening oversight of rare-earth exports and cracking down on illegal trafficking networks. The agency stated it will “act according to law” to deter and punish infiltration, sabotage, and theft carried out by foreign intelligence services and their domestic collaborators.

The warning comes amid growing global tension over critical mineral supply chains, with several countries seeking to reduce their dependence on Chinese materials through new mining projects, partnerships, and strategic stockpiles.