In a significant diplomatic move, Indian External Affairs Minister S. Jaishankar recently met with Chinese Foreign Minister Wang Yi in New Delhi to discuss a range of bilateral issues. The meetings come amid ongoing efforts to strengthen India-China relations, particularly regarding trade dynamics related to vital resources.
Reports suggest that China is considering easing export restrictions on critical commodities such as rare earth minerals, fertilizers, and tunnel boring machines. These items are essential for India’s technological and industrial growth. Chinese Foreign Ministry Spokesperson Mao Ning addressed these developments, stating that she was not aware of the specific claims made by journalists but emphasized China’s willingness to engage in dialogue and cooperation to stabilize supply chains globally.
During his two-day visit, Wang Yi assured Indian officials that he would work to meet India’s needs for these valuable materials. Such assurances are crucial for India, given that rare earth minerals play a pivotal role in the production of electric vehicles, batteries, and drones—key areas for India’s economic advancement. With China controlling about 70 percent of global rare earth mining and processing, this potential easing of restrictions could significantly impact India’s manufacturing sector.
The context for this discussion includes past China-imposed export controls on several rare earth elements, which were initiated during heightened international trade tensions. These restrictions disrupted shipments to many countries and affected global technology and energy sectors. The last partial lifting of these restrictions in June 2025 did not benefit India, highlighting the importance of the current talks.
India’s strategic response has included seeking partnerships with other nations to reduce dependence on China. Agreements have been signed with several countries, including Argentina and Australia, to bolster India’s rare earth reserves, which are the fifth-largest globally. Furthermore, initiatives like the 2024 Critical Minerals Mission aim to enhance domestic production capabilities, aligning with global trends toward clean energy.
These developments illustrate a growing recognition of the critical role that rare earth minerals play in national and economic security for both China and India amid fluctuating global demands and supply uncertainties.
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