China lifts export curbs on rare earth magnets to India
Wang Yi
's visit to India, where he is scheduled to meet Prime Minister Narendra Modi and National Security Adviser Ajit Doval.
Assurances from Beijing
Wang Yi reportedly assured External Affairs Minister S Jaishankar that Beijing would work to resolve three issues raised by India — the supply of rare earth magnets, fertilisers, and tunnel boring machines. According to the media reports, shipments of these items have already resumed.
The breakthrough follows discussions last month between Jaishankar and Yi, during which India pressed for easing restrictions that had disrupted supply chains.
Fertiliser curbs had directly affected the availability of di-ammonium phosphate during the Rabi season, while delays in shipments of tunnel boring machines slowed progress on key infrastructure projects. Restrictions on rare earth magnets, meanwhile, raised concerns among automotive and electronics manufacturers over potential production bottlenecks.
Industry impact
Rare earth magnets are critical inputs for electric vehicles, wind turbines, electronics and defence applications. India's auto and electronics industries had warned that prolonged restrictions could have a debilitating impact on production. Fertiliser shortages also posed risks for agricultural output, while delayed machinery supplies threatened timelines of large infrastructure projects.
Political backdrop
The easing of trade curbs comes after both sides made progress on disengagement along the Line of Actual Control. Wang and Jaishankar met twice, agreeing to gradually restore normalcy in ties through confidence-building measures and economic cooperation.
The move also comes against a shifting geopolitical backdrop. While the United States has tightened tariffs on Indian exports citing national security concerns, it has taken a more accommodative stance towards Beijing, extending a trade truce and delaying tariffs on Chinese goods.
For New Delhi, China's decision to lift restrictions is seen as an important step in stabilising bilateral relations and addressing supply chain disruptions in key industries.
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