China came with India - restrictions on the supply of fertilizers, rare minerals and boring machines were lifted

Kicking off new cooperation:China will lift the curbs on the export of fertilizers and rare-earth minerals to India, officials disclosed on Tuesday. They explained that this information was passed to Indian External Affairs Minister S. Jaishankar by Chinese Foreign Minister Wang Yi. The dialogue that triggered the move was held recently, with India stressing these matters during the most recent talks. The Indian side views the decision as a significant easing of supply concerns. Wang Yi’s current two-day stay in India also aims to reinforce these commitments, according to officials. Focus on critical technologiesAccording to the same source, the visiting minister assured Mr. Jaishankar that Beijing will fulfill New Delhi’s needs for fertilizers, rare-earth minerals, and tunnel-boring machines. The Indian minister did not elaborate on the discussions, however he confirmed that Beijing was informed of the country’s specific worries in his previous meetings, including his visit to China a month back. Rare-earth elements, in particular, are vital inputs for high-end technologies, including electric vehicles, aerial drones, and large-scale battery storage systems. Addressing shortages of these critical inputs is, therefore, essential to India’s planned projects in these sectors.China has long been a leading player in the global supply chain for critical minerals, key raw materials for many high-tech industries. To keep the partnership productive, the Foreign Minister recently urged India and China to take a transparent and forward-looking stance following a challenging period in their bilateral ties.Negative consequences have followed China’s recent trade controls, particularly for India’s agriculture and automobile industries. New restrictions on fertilizer shipments sharply cut the amount of di-ammonium phosphate available in the Rabi cropping window. Similar curbs halted delivery of tunnel-boring machines, endangering deadlines on key infrastructure developments. Resounding alarms have also been raised in the auto and electronics sectors over Beijing’s limits on rare-earth magnets and other minerals, essential components in electric motors and circuit boards. Each of these measures, framed as security precautions in light of mounting tensions, has the potential to slow production and raise costs in India’s most strategically important industries.