【By Liu Bai, Observer News】Amid China's intensified crackdown on the smuggling and transshipment of strategic minerals, the exports of two key minerals, germanium and antimony, have seen a significant decline over the past three months.

Previously, foreign media reported that U.S. buyers bypassed Chinese regulations by transiting through third countries to obtain the minerals. Since China banned the export of antimony to the U.S. last year, a large amount of antimony has still entered the U.S. from Thailand and Mexico.

China holds a dominant position in the supply of key minerals such as antimony and germanium, which are widely used in weapons, telecommunications, and solar cells. Like rare earths, China is the largest producer and refiner of these elements.

Data released by the General Administration of Customs of China on July 20 stated that the exports of antimony and germanium in June fell by 88% and 95%, respectively, compared to January.

After the U.S. imposed restrictions on China's chip industry, China issued an announcement in December last year to strengthen the control of the export of related dual-use items to the U.S., generally not allowing licenses for the export of gallium, germanium, antimony, and super-hard materials-related dual-use items to the U.S.

In April this year, China included rare earths in the export control list, leading to a sharp drop in exports and forcing some European and American automotive manufacturers to suspend parts of their production lines.

With the agreement between China and the U.S., China's rare earth exports rebounded strongly in June, with the export volume of rare earth magnets to the U.S. surging more than seven times that of May.

On May 10, 2023, Shanghai, China Brand Day, Northern Rare Earths displayed rare earth products. Visual China

However, at the same time, the exports of germanium and antimony have dropped to one of the lowest levels in history.

The report states that this sharp drop in exports coincides with China's intensified crackdown on the smuggling and transshipment of key minerals.

Since China implemented export controls, the spot market price of high-purity germanium has more than doubled. The price of antimony has almost quadrupled since last May.

Reuters disclosed on July 9 that U.S. buyers bypassed Chinese regulations by transiting through third countries to obtain the minerals. For example, according to customs and shipping records, even after China banned the export of antimony to the U.S. in December last year, a large amount of antimony still entered the U.S. from Thailand and Mexico.

Data shows that from December last year to April this year, the U.S. imported 3,834 tons of antimony oxide from Thailand and Mexico. This quantity almost exceeded the total of the previous three years.

According to China's customs data up to May, Thailand and Mexico have risen to become the top three export markets for China's antimony, while these two countries could not even enter the top ten in 2023.

But according to the latest data, the export of antimony from China to Thailand reached a historical high in April, then fell by 90%. Since April, China's antimony exports to Mexico have been zero.

As early as May this year, the office of the national export control work coordination mechanism deployed a special operation to crack down on the smuggling and export of strategic minerals.

The spokesperson of the Ministry of Commerce at that time pointed out that all relevant departments immediately launched actions, targeting illegal acts such as false declaration, concealment, smuggling, and "third-country" transshipment aimed at evading export controls. They conducted cross-departmental investigations and case discussions, increased port inspections and law enforcement efforts, thoroughly investigated illegal entities and smuggling networks, strictly and quickly handled violations, continuously improved the effectiveness of export control enforcement, and effectively safeguarded national security and development interests.

On July 19, the office of the national export control work coordination mechanism organized units including the Ministry of Commerce, the Ministry of Public Security, the State Security Bureau, the General Administration of Customs, the National Postal Administration, the Supreme People's Court, and the Supreme People's Procuratorate in Nanning, Guangxi, to hold a meeting on the advancement of the special operation to crack down on the smuggling and export of strategic minerals, summarizing and reporting on the progress so far, comprehensively analyzing the current situation of anti-smuggling, and re-deploying and promoting the special operation.

The meeting pointed out that since the launch of the special operation, all relevant departments have earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, established special teams, acted quickly, formulated plans, and clearly defined tasks. They have adopted a zero-tolerance and tough approach to the smuggling and export of strategic minerals, continuously increased the intensity of law enforcement and case handling, investigated a batch of illegal export cases of strategic minerals, arrested a batch of smuggling suspects, and achieved phased results in the special operation.

The meeting emphasized that the current situation of cracking down on the smuggling and export of strategic minerals remains severe. Some unscrupulous individuals still engage in smuggling by colluding inside and outside, and the methods of evading regulations such as false declarations and third-country transshipment are becoming increasingly covert. All relevant departments must "fulfill their responsibilities and do their duties," maintain a strict investigation and punishment pressure, and prevent the illegal leakage of strategic minerals and related technologies.

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Original: https://www.toutiao.com/article/7529753242192937506/

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