【By Liu Bai, Observers Network】Faced with China's key mineral control in accordance with international practices, some US and Western buyers have been complaining bitterly, even resorting to underhanded tactics.
Reuters reported on July 9 that to circumvent Chinese controls, some American buyers have obtained minerals through third countries. For example, according to customs and shipping records, despite China's ban on exporting antimony to the United States last year, a large amount of antimony still entered the United States from Thailand and Mexico.
China is dominant in the supply of key minerals such as antimony, gallium, and germanium, which are widely used in telecommunications, semiconductors, and military technology.
After the US imposed restrictions on China's chip industry, China issued an announcement in December last year to strengthen export controls on related dual-use items to the United States, generally not allowing licenses for the export of dual-use items related to gallium, germanium, antimony, and super-hard materials to the United States.
The notice also emphasized that any organization or individual in any country or region who violates the above regulations by transferring or providing relevant dual-use items originally produced in the People's Republic of China to organizations or individuals in the United States will be held legally accountable.
The report stated that China's regulatory measures have led to changes in trade flows, intensifying competition for critical minerals, and indicating the challenges China faces in implementing the controls.

Yunnan rare earth mine, Visual China
In particular, trade data shows that U.S. importers have diverted shipments through third countries.
Three industry experts confirmed this assessment, including executives from two U.S. companies. They told Reuters that they have obtained restricted minerals from China in recent months.
Data shows that from December 2023 to April 2024, the United States imported 3,834 tons of antimony oxide from Thailand and Mexico. According to U.S. Customs data, this quantity almost exceeded the total of the previous three years.
At the same time, according to China's customs data up to May, Thailand and Mexico have risen to become China's top three export markets for antimony, while these two countries were not even in the top ten in 2023.
Consulting firm RFC Ambrian said that Thailand and Mexico each have only one antimony smelting plant, and the smelting plant in Mexico only resumed operations in April this year. Neither of these countries has significant mining of this metal.
Despite the price increase, the United States is expected to import antimony, gallium, and germanium this year at levels equal to or exceeding those before the ban.
Reuters also mentioned that U.S. law does not prohibit U.S. buyers from purchasing antimony, gallium, or germanium produced in China. As long as they obtain an export license, Chinese companies can still export these minerals to non-U.S. countries.
Levi Parker, CEO and founder of U.S.-based mineral company Gallant Metals, said he receives about 200 kilograms of gallium from China each month, but he did not reveal the identity of the relevant parties.
He said that first, procurement agents obtain the materials from producers. Then, a freight company transports these packages, transits them through another Asian country, and re-labels them as iron, zinc, or art supplies, for example.
Parker said these workarounds are neither perfect nor cost-effective. He said he hopes to import 500 kilograms regularly, but bulk transportation is likely to trigger scrutiny, and logistics companies are very cautious due to the high risk.

Chinese export controls have caused price increases for gallium (purple line), germanium (red line), and antimony (blue line) - Reuters map
James Hsiao, a partner at White & Case in Hong Kong, told Reuters that offenders may face fines and future export bans. In serious cases, they could be charged with smuggling and sentenced to more than five years in prison.
Despite the risks, the prices of gallium, germanium, and antimony have reached record highs due to tight supply in overseas markets, making it still profitable for enterprises willing to take risks.
Ram Ben Tzion, co-founder and CEO of digital freight review platform Publican, said that although there is clear evidence of transshipment, trade data cannot identify the involved companies.
He said that the challenge China now faces is how to ensure that the export controls truly take effect.
This May, the Office of the National Export Control Coordination Mechanism deployed a special campaign to crack down on the smuggling and export of strategic minerals.
The spokesperson for the Ministry of Commerce stated that strengthening export controls on strategic mineral resources concerns national security and development interests. Since implementing export controls on certain strategic minerals, we have found that some foreign entities and domestic lawbreakers have colluded to try to bypass export control measures through smuggling. To curb this trend, the National Export Control Coordination Mechanism Office held a field meeting and made special arrangements on May 9 in Shenzhen, Guangdong Province, and will organize a series of actions in the near future.
The spokesperson emphasized that all relevant departments immediately launched actions, targeting the illegal and disciplinary acts such as false declarations, concealment, smuggling, and "third-country" transshipment in the strategic mineral sector. They quickly conducted cross-departmental investigations and case discussions, increased port inspections and enforcement, thoroughly investigated hidden illegal entities and smuggling networks, handled illegal cases strictly and quickly, continuously improved the effectiveness of export control enforcement, and effectively safeguarded national security and development interests.
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Original: https://www.toutiao.com/article/7525278548895040050/
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