China lifted export curbs on fertilizers, rare earth magnets, minerals, and tunnel boring machines bound for India on Monday. The move comes in response to three key issues raised by India during a meeting between External Affairs Minister S. Jaishankar and Chinese Foreign Minister Wang Yi last month.
Chinese Foreign Minister Wang Yi is currently in India on a three-day diplomatic visit. On Monday, he assured Jaishankar that China has already taken steps to address India’s concerns and has initiated shipments of the vital items.
In his opening remarks, Jaishankar noted that the talks would cover a range of topics, including economic and trade matters, pilgrimages, people-to-people ties, sharing of river data, border trade, connectivity, and overall bilateral exchanges.
India expressed its concerns to China after sudden fertilizer restrictions directly disrupted the availability of Di-Ammonium Phosphate during the Rabi season. Similarly, China also suspended shipments of tunnel boring machines destined for major infrastructure projects in India, including those made by foreign companies manufacturing units in China.
Restrictions on rare earth mineral exports affected the automotive and electronics industries, leading to serious shortages and raising doubts about possible production disruptions.
Reports indicate that China enforced the restrictions, attributing the decision to national security issues and ongoing tensions in its diplomatic relationship with India.
The developments align with efforts by Beijing and India to restore stability in diplomatic ties. The agreement also comes amid rising tensions between India and the United States, which has levied steep tariffs and accused New Delhi of financially supporting Russia’s war in Ukraine, straining the relationship between the two allies.
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