China Targets Illegal Mining Amid Rising US Tensions

China has started taking strong action against illegal mining operations to keep its top position in the global rare earth market. This move comes at a time when trade tensions with the United States are getting worse. Rare earth elements are vital for many products, including smartphones, electric vehicles, and military technology. China currently supplies more than 90% of the world’s refined rare earth minerals, which makes it the most important player in this field.

New export rules have been introduced by the Chinese government. These rules require companies to get special approval before they can ship these minerals out of the country. The aim is to control the full supply chain and prevent valuable resources from leaving China without proper checks. The government believes this will help protect its long-term economic and security interests.

Several provinces are now working to support these new policies. Local officials in Guangxi, Guizhou, and Hunan have begun strict inspections of mining activities. They are focusing on both legal and illegal operations. In Hunan, all companies involved in rare earth exports are being listed and checked for compliance. Officials are also offering help to companies that want to meet the new requirements.

In Guangxi, efforts are focused on stopping unlicensed mining operations. Authorities are carrying out regular site inspections and reviewing permits. Guizhou has also launched similar operations. These regional crackdowns follow direct orders from the central government in Beijing. The national goal is to make sure that rare earth production, processing, and exports are fully controlled.

China’s focus on rare earths is not new. These minerals are considered critical because they are used in so many high-tech products. Over the years, China has built a strong supply chain and invested heavily in refining and processing. The country’s control over this sector gives it a powerful advantage in global trade.

However, the current wave of enforcement is more intense than in the past. It is part of a larger strategy to make sure that rare earth exports are not used against China’s national interests. Experts believe that Beijing wants to manage the entire life cycle of rare earths, from mining and refining to final export. This level of control helps the country stay ahead in industries that rely on these materials.

The timing of these actions is also important. The United States has been trying to reduce its dependence on Chinese rare earths. It has increased mining at home and partnered with countries like Australia and Canada. But so far, no country has been able to match China’s production levels. Any change in China’s export policy can cause price spikes and shortages across the globe.

After the new export rules were announced, prices for some rare earths rose by nearly 10%. This shows how much influence China has in this market. The United States and its allies are watching the situation closely. They are concerned that China could use its dominance in rare earths as a tool in future trade talks or political disputes.

China’s government has made it clear that these steps are about protecting national resources. At the same time, stopping illegal mining also helps the environment. Mining rare earths can cause serious damage if not done properly. The crackdown could help reduce pollution and make mining practices safer.

This latest move also fits into China’s broader plan to modernize its economy. By focusing on high-tech industries and clean energy, the country wants to be a global leader. Controlling rare earths is a key part of this plan. These minerals are used in solar panels, wind turbines, and electric vehicle batteries. As the world shifts to greener energy, the demand for rare earths is expected to grow even more.

Companies that rely on these minerals may need to make changes. They might invest in rare earth recycling or look for new suppliers. But finding other sources will take time. For now, China’s control over rare earths remains strong.

China’s campaign against illegal mining shows that it is serious about securing its place in the global mineral market. With strict rules and tighter enforcement, the country is making sure that its resources are used to support its own growth and stability.