China to crack down on illicit rare-earth exports

China's state security agency says it is cracking down on alleged smuggling of rare earths minerals that it says threaten national security, just weeks after Beijing and Washington agreed to make it easier for American firms to obtain from China those materials, which are critical for manufacturing and computer chip production.

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In a report published on Friday in the state-run newspaper Global Times, the Ministry of state security said foreign "espionage and intelligence agencies" were colluding to steal rare earths-related goods by repackaging and relabeling rare metals to hide their Chinese origin.

In some cases the minerals were falsely declared as non-controlled items, mislabeled as such things as "solder paste," mixed into other materials like ceramic tiles, or hidden in plastic mannequins or bottled water, it said.