China removes export restrictions on fertilizers, rare earths & tunnel boring machines to India

NEW DELHI : China has made an important decision to lift restrictions on the supply of fertilizers, rare earth minerals, and tunnel boring machinery to India, which could reduce economic tensions. Chinese Foreign Minister Wang Yi and Indian External Affairs Minister S. Jaishankar met in Beijing to discuss the decision.

India had earlier pressed China to act, after sudden fertilizer curbs disrupted the supply of Di-Ammonium Phosphate during the Rabi season. Beijing had also withheld tunnel boring machines destined for critical Indian infrastructure projects, including those produced by foreign firms in China-based units.

Meanwhile, restrictions on rare earth magnets and minerals alarmed India’s auto and electronics industries, which feared a serious production crisis. These moves stemmed from security considerations amid bilateral tensions.

Wang Yi and Jaishankar met twice last month to resolve political differences following troop disengagement along the Line of Actual Control. Both leaders agreed to gradually restore normalcy in ties starting with confidence building measures to now easing economic restrictions.

This breakthrough comes as the US hardens its stance on India, with officials criticising New Delhi’s ties with Russia. The Trump Administration recently imposed an additional 25 per cent national security tariff, raising duties to 50 per cent.

In contrast, Washington eased pressure on Beijing by extending a trade truce, delaying new tariffs for 90 days, and moving to lift curbs on high-end chip exports to China.