Easing long-standing supply chain strains, China begins addressing India’s concerns over curbs on rare earths, fertilisers, and machinery.
China has begun addressing India’s concerns over its export restrictions on fertilisers, rare earth magnets, minerals and tunnel boring machines, following diplomatic discussions between the two countries. The move comes after talks held last month between Chinese Foreign Minister Wang Yi and India’s External Affairs Minister S. Jaishankar, The Economic Times reported.
During a two-day visit to New Delhi, Wang Yi reportedly assured Jaishankar that Beijing had started responding to Indian requests on the affected commodities. The development offers relief to sectors that have faced significant disruption in recent months.
Fertiliser curbs disrupted supplies of Di-Ammonium Phosphate (DAP) during the Rabi season, while shipments of tunnel boring machines, critical for India’s infrastructure projects, were delayed, including equipment manufactured by foreign companies but assembled in China. Meanwhile, India’s automobile and electronics industries have raised repeated concerns about shortages of rare earth magnets, warning of potential production risks.
China’s restrictions were linked to national security considerations amid ongoing tensions with India. In April, Beijing mandated special export licences for seven rare earth elements and related magnets, tightening global supply.
A senior Indian official, quoted by PTI, said: “Efforts are on. In fact, when we last approached the Embassy of China, they had also issued visas to our companies, and they are in touch with Chinese authorities, and they are also finding means and ways by which the supply chain does not get impacted.”
Indian officials are continuing to engage with Beijing to ensure supply chains remain stable.
