According to reports, China has notified India that it has removed export restrictions on fertilizers, rare earth magnets and minerals, and tunnel boring machines. This significant development follows Indian External Affairs Minister S. Jaishankar’s discussions with Chinese Foreign Minister Wang Yi last month, where Jaishankar pressed these three key demands. Wang Yi, currently on a three-day diplomatic visit to India, reportedly assured Jaishankar on Monday that Beijing has already started addressing India’s requests. Reports also indicate that China has begun shipping these critical items to India. According to The Economic Times, Wang Yi had assured Jaishankar on Monday that Beijing had already begun acting on these requests.
Why China Imposed Export Curbs
It was said that China imposed the restrictions on these items, citing security concerns and strained bilateral relations with India. However, on Tuesday, Wang Yi praised the progress in India-China relations, saying they are moving in a “positive direction.” During talks with Jaishankar on Monday, he emphasised that India and China should view each other as partners and opportunities rather than threats or adversaries. He highlighted the resumption of talks at all levels and the maintenance of peace in border areas as signs that bilateral ties are returning to a path of cooperation.
India had earlier raised concerns about China suddenly restricting three important items. The export ban affected the Rabi farming season by reducing the supply of Di-Ammonium Phosphate (DAP) fertilizer. At the same time, delays in shipments of tunnel boring machines slowed down key infrastructure projects, including those run by foreign companies with manufacturing plants in China.
Did It Impact India?
China’s restriction on rare earth mineral exports affected the auto and electronics industries, causing serious shortages. Companies warned that these shortages could disrupt production. The auto and electronics industries reported serious shortages due to China’s restrictions on rare earth minerals and warned that production could be disrupted.
