China Lifts Export Curbs on Fertilizers, Rare Earths, and Tunnel Boring Machines to India

China has lifted restrictions on the export of fertilizers, rare earth magnets and minerals, as well as tunnel boring machines to India. This move comes as part of discussions between Indian External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi during Wang’s two-day visit to India.

Sources indicate that Wang Yi assured Jaishankar that China has already begun responding to India’s requests regarding these critical items. Reports suggest that shipments of fertilizers, rare earth materials, and tunnel boring machines have already started, addressing India’s concerns over supply chain disruptions.

India had raised urgent issues with China, particularly the recent curbs on fertilizers that had directly affected the availability of Di-Ammonium Phosphate during the Rabi season. Additionally, the halt on shipments of tunnel boring machines was causing delays in key infrastructure projects, including those involving foreign companies operating in China.

The auto and electronics sectors in India had also expressed serious concerns over Chinese restrictions on rare earth magnets and minerals, which are crucial for production processes. These restrictions had the potential to severely impact manufacturing, driven largely by security considerations amid rising tensions between the two nations.

The meeting between Jaishankar and Wang Yi, which included two sessions last month, focused on resolving political differences following a successful disengagement of troops along the Line of Actual Control. Both sides have expressed a commitment to gradually restore normalcy in their bilateral ties, starting with confidence-building measures and now easing economic restrictions.

This decision carries significant implications, particularly in light of the current geopolitical climate. The United States has adopted a tougher stance towards India, with officials frequently criticizing New Delhi’s relationship with Russia. Recently, the Trump Administration imposed an additional national security tariff of 25% on India, raising the total to 50%. Conversely, the US has shown a more lenient approach towards China, extending a trade truce and delaying the imposition of tariffs on Chinese exports.

The lifting of export curbs by China signals a potential thaw in relations between the two countries, emphasizing the importance of economic collaboration even amidst broader geopolitical challenges.