ZGXT(SZ:000831) Sou Hu Cai Jing·2025-10-27 07:49Core Viewpoint - Recent revelations indicate a significant increase in rare earth smuggling activities, posing a threat to national security and industrial integrity [1][7]. Group 1: Smuggling Incidents - A recent case involved the Xiamen Customs seizing a container labeled as "scrap metal," which contained 3.5 tons of rusty rare earth waste intended for Europe [3]. - Another incident at Guangzhou Baiyun Airport uncovered 2.3 tons of rare earth oxides hidden in a container marked as "cosmetic raw materials" [3][4]. - These incidents highlight a growing underground network for rare earth smuggling, with criminals employing increasingly sophisticated methods to evade detection [3][4]. Group 2: Importance of Rare Earth Elements - Rare earth elements are critical for advanced technologies, including missiles, aircraft carriers, satellites, and various high-tech products such as smartphones and electric vehicles [3][7]. - China holds a dominant position in global rare earth reserves, particularly in medium and heavy rare earths, accounting for 90% of the global supply [3]. Group 3: Smuggling Techniques - Smugglers have been found to mix rare earth materials with scrap to disguise them, using methods such as adding rust to neodymium-iron-boron waste [4]. - Advanced detection systems, including AI and density scanning technology, have been implemented by customs to combat these smuggling tactics [6]. Group 4: Government Response - In May 2024, a joint operation by the Ministry of Commerce, Public Security, National Security, and Customs was launched to combat rare earth smuggling, resulting in over 130 cases and more than 5 billion yuan involved in just three months [6]. - Legal measures are being discussed to enhance penalties for rare earth smuggling, with some experts suggesting that the severity of penalties should align with those for drug trafficking due to the potential national security implications [6][8]. Group 5: Broader Implications - The smuggling of rare earths not only threatens national resources but also undermines China's industrial foundation and aids foreign military technology development [7]. - The persistence of smuggling activities raises questions about the underlying networks supporting these operations and the need for comprehensive strategies to dismantle them [8].