Ministry of Commerce Launches Operation Targeting Strategic Mineral Smuggling, Responds to EU Criticism on Trade Issues

At a press briefing on July 10, Ministry of Commerce spokesperson He Yadong confirmed that China’s Office of the National Export Control Coordination Mechanism initiated a targeted operation in May to crack down on the unauthorized export of strategic minerals. This initiative is intended to prevent the illicit outflow of vital resources and safeguard national interests. Minerals such as antimony and gallium, which hold notable dual-use capabilities, are subject to export controls consistent with global norms.

The Office previously convened a field meeting in Shenzhen, in collaboration with the Ministry of Commerce and other relevant departments, to reinforce regulatory measures. The session emphasized that tighter control over strategic mineral exports is essential to maintaining security and supporting national development. Since China began regulating the export of substances like gallium, germanium, antimony, tungsten, and heavier rare earths, certain overseas entities have colluded with local actors to develop new smuggling techniques. In response, authorities are intensifying efforts to disrupt illegal practices and ensure the continuity of compliant trade and supply chains.

He Yadong noted that China, as a responsible global actor, remains attentive to the legitimate civilian requirements of other nations. Export license applications are processed strictly in accordance with legal frameworks, and approvals are granted for eligible requests.

Responding to recent remarks by European Commission President Ursula von der Leyen—who criticized China’s stance on market access, subsidies, procurement policies, export regulation, and alleged overcapacity—He asserted that such commentary misrepresents the current trajectory of China-EU trade relations and overlooks the outcomes of sustained bilateral engagement.

Regarding market access, He explained that China has consistently advanced its level of openness, lifting foreign investment restrictions in manufacturing and promoting imports from the EU through platforms like the China International Import Expo. Meanwhile, the EU has adopted increasing protectionist policies, invoking fair trade rhetoric, misusing trade defense mechanisms, and deploying unilateral instruments that conflict with WTO norms. These actions include frequent subsidy probes targeting Chinese firms and a general rollback in market transparency.

On subsidies, He cited a longstanding pattern of double standards. He pointed to established EU subsidy practices, particularly in agriculture and aviation, that have violated WTO guidelines. Despite this, the EU continues to expand subsidy programs, with plans totaling over €1.44 trillion between 2021 and 2030. National-level subsidies across EU member states amount to several hundred billion euros.

In the realm of public procurement, He highlighted persistent implicit barriers within the EU market, noting that preference policies favoring “European goods” have drawn criticism from multiple nations. The EU’s restrictions on Chinese medical device suppliers have prompted China to adopt reciprocal measures to uphold its companies' rights.

Addressing export controls, He emphasized China’s measured and restrained approach. He noted that China maintains fewer items under restriction than the EU, and its rare earth export regulations comply with statutory requirements. A fast-track mechanism has been introduced to facilitate EU firm applications. Nonetheless, the EU has criticized China while maintaining its own slow and cumbersome approval systems, which disrupt bilateral supply chain reliability.

On the issue of overcapacity, He contested claims based solely on output or export data. He argued that China's new energy sector does not suffer from excess capacity and instead faces development gaps. China continues to refine its industrial structure in line with market dynamics, bolstering domestic demand as a central engine of growth. He also underscored that Chinese green technologies have contributed to the EU’s climate transition and supported its industries, rather than creating market distortions.

In closing, He suggested that the core challenge may stem from the EU’s waning competitiveness and lagging R&D investments. As 2025 marks half a century of diplomatic relations between China and the EU, He encouraged the bloc to approach economic engagement with objectivity and mutual respect. China remains committed to dialogue and cooperation, particularly in areas such as market access, public procurement, and export controls, in pursuit of stronger global economic stability and a more open international trading system.