China's Ministry of State Security publicizes gallium smuggling case

China's Ministry of State Security (MSS) has publicized a case involvinga failed attempt by Chinese and foreign parties to smuggle gallium out of the country, as gallium is a critical mineral for producing semiconductor chips that has been put on China's export control list, according to a post on the ministry's official Wechat account on Monday.

Citing the case as an example, the ministry reminded the Chinese public of the importance of safeguarding the security of key mineral resources, while calling for vigilance against espionage and intelligence activities targeting China’s strategic and critical mineral resources conducted by foreign spy agencies and their agents.

According to the post, after receiving relevant report, it was founded by national security officers that a foreign individual surnamed Du was attempting to carry a bottle containing gallium in his luggage abroad. The attempt was prevented promptly.

Investigation revealed that Du was unaware the item was gallium, which is on China’s export control list, and Du was entrusted by an employee at a domestic metal company surnamed Tang to carry it out of the country. Given the small quantity and lack of substantial harm, security authorities only criticized and educated Du in accordance with law, and informed him of China’s export control regulations.

The ministry launched an investigation into Tang and his company, and founded out that Tang was acting under the instruction of a foreign individual surnamed Fan. Although Tang was fully aware that gallium was a controlled item, he succumbed to “financial temptation”and devised a plan to evade regulation by entrusting Du to carry the gallium abroad.

Consequently, a joint law enforcement action was taken, and the company and responsible parties would face legal penalties.

As a reminder, the ministry noted that rare metals like gallium are essential strategic resources for China’s development in the context of the current profound changes in the international landscape, and they provide the key material foundation for supporting new energy transformation, technological advancement, and industrial upgrading, which are critical to China’s national development and security.

“National security authorities have stepped up precautions and legal actions against foreign espionage agencies and their agents who attempt to steal intelligence on critical mineral resources, especially strategic ones,” MSS said, while encouraging the Chinese public to report any suspicious activity to relevant departments.

Since August 1, 2023, China has implemented export controls on gallium and germanium-related items to maintain national security. Industry insiders stressed that the export curbs are in line with international practices and do not target any specific country.