Luu Anh Tuan, a Vietnamese entrepreneur and U.S. permanent resident, was sentenced to 16 years in prison and a $10 million fine after being accused of illegally transferring rare earth separation technology to the U.S. The case highlights China’s efforts to maintain dominance over critical minerals used in technology and defense systems. Tuan had previously fled Vietnam to escape Beijing’s increasing influence, but his return in 2023 led to his arrest by Vietnamese authorities, believed to be at the behest of the Chinese Communist Party. Despite efforts to transfer the technology to the U.S. through his Nevada-based company, Tuan was convicted of forging tax receipts and smuggling rare earth materials, though his advocates argue the charges were politically motivated.
Tuan’s arrest coincided with significant international moves to reduce reliance on China’s rare earth dominance. President Joe Biden’s visit to Vietnam and the signing of cooperation agreements on rare earth minerals underscored the U.S. and its allies’ concerns over China’s control over strategic materials. The arrest also came as Vietnam prepared to auction the Dong Pao mine, with VTRE, backed by Western partners, being the only qualified bidder. The incident is seen as a part of China’s broader strategy to maintain its stranglehold on critical minerals essential for modern technology and military applications.
Experts emphasize that China’s control over rare earth separation and refining processes has been a critical factor in its ability to dominate markets. While the U.S. and Australia are developing their own technologies, China still controls up to 90% of the separation and refining capacity. The recent export bans by China have further pressured Western countries to develop their own capabilities, but the technical and regulatory hurdles remain significant. Tuan’s case has drawn attention to the geopolitical tensions over resources that underpin global technology and defense industries.