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China Lifts Export Curbs On Fertilizers, Rare Earths, Tunnel Boring Machines To India

Last Updated: August 19, 2025, 10:26 IST

China has informed India that it has lifted export restrictions on fertilizers, rare earth magnets/minerals, and tunnel boring machines

Wang's visit comes days ahead of Prime Minister Narendra Modi's planned trip to China. (Photo:X/@DrSJaishankar)

In a major breakthrough, China has informed India that it has lifted export restrictions on fertilizers, rare earth magnets/minerals, and tunnel boring machines—the three key demands raised by New Delhi during External Affairs Minister S. Jaishankar’s meeting with his Chinese counterpart, Wang Yi, last month.

According to The Economic Times, Wang Yi—currently in India on a two-day visit—assured Jaishankar on Monday that Beijing had already begun acting on these requests. Sources familiar with the matter said shipments of the three critical items have already started.

India had earlier expressed strong concerns over sudden Chinese restrictions. Fertilizer curbs directly hit the supply of Di-Ammonium Phosphate (DAP) during the Rabi season, while shipment delays of tunnel boring machines affected crucial infrastructure projects, including those using equipment manufactured by foreign companies in their China-based plants.

The auto and electronics sectors had also flagged severe shortages due to curbs on rare earth minerals, warning of disruptions in production. The restrictions, according to the ET report, were imposed by China, citing security considerations amid strained bilateral relations.

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Jaishankar and Wang met twice last month to ease tensions following the troop disengagement process along the Line of Actual Control (LAC). Both sides agreed on the gradual normalisation of ties, starting with confidence-building measures and extending to the easing of trade restrictions.

The development comes as the US hardens its stance on India, with Washington criticising New Delhi’s ties with Russia. The Trump administration has also imposed an additional 25% national security tariff, taking the total levy to 50%. In contrast, the US has been more accommodating toward Beijing, extending a trade truce, delaying fresh tariffs by 90 days, and easing export curbs on high-end chips to China.

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First Published: August 19, 2025, 10:26 IST

News business » economy China Lifts Export Curbs On Fertilizers, Rare Earths, Tunnel Boring Machines To India

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Top-Flatworm8201 on August 19th, 2025 at 10:17 UTC »

Submission Statement:

In a major breakthrough, China has informed India that it has lifted export restrictions on fertilizers, rare earth magnets/minerals, and tunnel boring machines—the three key demands raised by New Delhi during External Affairs Minister S. Jaishankar’s meeting with his Chinese counterpart, Wang Yi, last month.

LIFTING OF CURBS: According to The Economic Times, Wang Yi—currently in India on a two-day visit—assured Jaishankar on Monday that Beijing had already begun acting on these requests. Sources familiar with the matter said shipments of the three critical items have already started.

INDIA'S CONCERN: India had earlier expressed strong concerns over sudden Chinese restrictions. Fertilizer curbs directly hit the supply of Di-Ammonium Phosphate (DAP) during the Rabi season, while shipment delays of tunnel boring machines affected crucial infrastructure projects, including those using equipment manufactured by foreign companies in their China-based plants.

The auto and electronics sectors had also flagged severe shortages due to curbs on rare earth minerals, warning of disruptions in production. The restrictions, according to the ET report, were imposed by China, citing security considerations amid strained bilateral relations.

SIGNIFICANCE:

The development comes as the US hardens its stance on India, with Washington criticising New Delhi’s ties with Russia. The Trump administration has also imposed an additional 25% national security tariff, taking the total levy to 50%. In contrast, the US has been more accommodating toward Beijing, extending a trade truce, delaying fresh tariffs by 90 days, and easing export curbs on high-end chips to China.