Core Viewpoint - The article reveals a hidden smuggling network exploiting China's export restrictions on gallium, germanium, and antimony, with Thailand and Mexico acting as intermediaries for U.S. buyers [1][5][11]. Group 1: Smuggling Operations - From December last year to April this year, 3,834 tons of antimony oxide were smuggled into the U.S., surpassing the total imports of the previous three years [2]. - Thailand and Mexico have suddenly become the top three destinations for China's antimony exports, despite not being in the top ten in 2023 [3]. - U.S. buyers are disguising Chinese gallium as "iron ingots," "zinc blocks," or "art pieces" to circumvent export bans, obtaining approximately 200 kg of gallium monthly [5]. Group 2: Economic Implications - The smuggling operations are costly, with logistics fees doubling, yet the high profits attract many speculators, with U.S. companies reporting profits 20% higher than normal channels despite additional costs [6]. - The lax customs regulations in Thailand and Mexico provide significant opportunities for smuggling networks [8]. Group 3: Regulatory Responses - China has initiated a crackdown on rare earth smuggling since May, with violators facing severe penalties, including up to ten years in prison for smuggling dual-use items [15]. - To address the loopholes, China is considering implementing a "digital iron curtain" using blockchain technology for tracking rare earth minerals throughout the supply chain [16]. Group 4: Strategic Context - The article emphasizes that the smuggling issue is part of a broader U.S.-China tech war, with China controlling 80% of global gallium and 60% of germanium production, critical for semiconductor and military applications [13]. - Countries like Thailand and Mexico risk long-term consequences by acting as intermediaries for U.S. supply chains, potentially undermining their own economic interests [11][17].