<h1>China cracks down on rare earth smuggling allegedly involving foreign intelligence agencies using fake packaging schemes</h1> China's state security agency announced a crackdown on rare earth smuggling, alleging foreign intelligence agencies are colluding to steal these minerals through repackaging and mislabeling. The materials were reportedly hidden in items like ceramic tiles, plastic mannequins, and bottled water, with false declarations as non-controlled items. This follows reports of rare earths being transshipped to the US via Thailand and Mexico. The crackdown occurs amid ongoing trade tensions, with China implementing permitting requirements on seven rare earth elements in April, causing a 45-day approval process that disrupted global supply chains. Meanwhile, the US lifted restrictions on certain semiconductor exports to China, though trade negotiations continue with an August 12 deadline. Both nations seek to balance national security concerns with economic cooperation in critical technology sectors.