China Resumes Critical Supplies to India
China has agreed to lift export restrictions and resume the supply of fertilizers, rare-earth minerals, and tunnel boring machines to India. This development follows discussions between Chinese Foreign Minister Wang Yi and India’s External Affairs Minister S. Jaishankar last month.
Supply Resumption Confirmed
During Wang Yi’s two-day visit to India, he assured that shipments of fertilizers—including urea, NPK, and DAP—as well as rare-earth magnets/minerals and tunnel boring machines (TBMs), will be resumed. Reports indicate that some shipments have already begun moving again.
Strategic Implications
The easing of restrictions aligns with both sides’ efforts to restore stable and constructive bilateral ties. India’s infrastructure and agriculture sectors, which had faced disruptions due to the curbs, stand to benefit from the renewed flows of these vital supplies.
Context of Previous Constraints
Earlier this year, China had imposed de facto blocks or delays on exports of specialty fertilizers, rare-earth minerals, and industrial machinery—including tunnel-boring equipment—causing concern among Indian industries. These restrictions were seen as strategic leverage amid broader diplomatic tensions.
Broader Industrial Response
In response to supply vulnerabilities, India has launched long-term strategies to reduce reliance on Chinese rare earth supplies. Plans include a ₹5,000 crore initiative to enhance domestic rare earth mining and processing capabilities.
