Foreign media: China assures India of resolving rare earth issues

Indian government sources said that China has committed to addressing India's major concerns regarding the supply of fertilizers, rare earths and tunnel boring machines, which has relieved the Indian industry.

A government official told businessline that Chinese Foreign Minister Wang Yi assured his Indian counterpart S Jaishankar that China is addressing India's demands for fertilizers, rare earths and tunnel boring machines. The important assurance from China to India came when Wang and Jaishankar met on Monday as the two countries are facing challenges from the US on trade and tariffs.

India has been actively lobbying China to ease restrictions on the export of rare earth elements and magnets, as India's electric vehicle manufacturers have been severely affected by the shortage of these materials. Rare earth elements are crucial for the magnets that power electric vehicle engines.

"India's demands for Chinese rare earth supplies were overwhelmed by the numerous applications collected by China's Ministry of Commerce after the implementation of restrictions. Requests from our automotive industry to meet with Chinese government officials were ignored. Now, it is hoped that things will change," another official said.

China is currently the world's largest producer of rare earth elements. On April 4, 2025, Beijing imposed export restrictions on seven types of rare earth elements and magnets. Apart from the electric vehicle industry, these products are also widely used in the defense, energy and automotive sectors. These restrictive measures are a response to the increase in tariffs on Chinese products by the United States, but they have also affected other countries including India. According to the new regulations, exporters need additional licenses to export from China.

"Indian electric vehicle manufacturers, especially those producing two-wheelers, have halted the production of certain models. The shortage of rare earth magnets has led to production delays and has postponed the launch of new models. This has severely impacted the Indian industry."

Now, both the Indian government and the rare earth industry are hoping that China will take prompt action and approve the application for supplying rare earths to India.