Reuters: How Western Countries Bypass China's Key Mineral Export Controls
Reuters, July 8 report, despite China's export controls on key minerals such as gallium, germanium, and antimony, the United States and its allies still bypass regulations through third-country transshipment, financial arbitrage, and supply chain restructuring to maintain reliance on Chinese minerals. Data shows that in the first four months of 2024, the United States imported 3,834 tons of antimony oxide from Thailand and Mexico, far exceeding the total of the past three years. These two countries almost do not produce antimony ore, suggesting that Chinese minerals may be re-exported to the U.S. after labeling or processing.
Gray Pathways: Labeling, Packaging, and Financial Games American buyers use Southeast Asian intermediaries to "clean up" Chinese rare earths, for example, transporting raw ore to Vietnam and Malaysia for processing and then labeling it as "ASEAN-made" to avoid taxes. Some companies also split large quantities of rare earths into small packages under $800, using the U.S. tax-free quota to import via courier. Wall Street investment banks, meanwhile, invest in Australian and African mines and purchase products, indirectly maintaining the supply chain of Chinese processing. It has been exposed that U.S. defense companies like Lockheed Martin use cryptocurrency payments to circumvent regulations.
Chinese Companies Involved in Transshipment Chinese antimony producer Youngsun Chemicals' Thai subsidiary Unipet exported 3,366 tons of antimony products to the U.S. between December 2023 and May 2024, a 27-fold increase compared to the previous year. The buyer was Texas-based Youngsun & Essen Company, which previously mainly purchased directly from China. The CEO of U.S. Gallant Metals Company revealed that they obtain 200 kilograms of gallium monthly through Chinese agents, with goods transshipped through Asian countries and disguised as "iron," "zinc," or "artworks."
China's Countermeasures and Western Dilemma In June, Chinese customs seized a batch of rare earth smuggling cases disguised as "ferric oxide," valued at 50 million yuan, while simultaneously strengthening monitoring of cryptocurrency transactions. However, the U.S. cannot easily escape its dependence in the short term: 80% of its rare earth processing relies on China. Domestic projects, such as the Idaho gold-antimony mine, are expected to start production as early as 2028, while deep-sea mining plans require ten years of preparation due to technical limitations. Despite the U.S., Japan, India, and Australia's high-profile promotion of the "Critical Minerals Initiative," experts point out that China controls 90% of global rare earth processing capacity, and the West's "detour" is merely a temporary solution.
Original article: https://www.toutiao.com/article/1837136253924352/
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