China Removes Export Restrictions on Fertilizers, Rare Earths & Tunnel Boring Machines to India
China’s decision to remove export restrictions on fertilizers, rare earths and tunnel boring machines is a major boost for India’s agriculture, infrastructure and manufacturing sectors.
Export - fertilizers - Taxscan
Export - fertilizers - Taxscan
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.
According to The Economic Times, Officials aware of the discussions said that China assured India that shipments of these items will resume without the restrictions that had been in place since the 2020 Galwan Valley border clash. That clash had resulted in casualties on both sides and led to a tightening of trade rules by China, which affected India’s access to some essential goods.
The supplies now being restored are vital for India. Fertilizers, particularly urea, are necessary for agriculture, and India depends on imports to meet a large part of its needs. Resuming supply from China will help lower costs for farmers and reduce pressure on global markets.
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Rare earth minerals and magnets are important for electric vehicles, electronics and defence manufacturing, and access to these resources will support India’s push for self-reliance in advanced technologies. Tunnel boring machines are key to large infrastructure projects such as metro rail systems, highways and urban development, and their availability will help India speed up construction timelines and reduce costs.
For now, the move is not a blanket policy change but a targeted assurance given to India. Sources suggested that approvals may still be issued case by case rather than through a formal announcement on the website of China’s Ministry of Commerce.
India’s Ministry of External Affairs has also not issued a detailed statement, but Indian media outlets have reported the development citing government insiders.
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This reflects China’s decision to improve trade ties with India at a time when Beijing faces pressure from the United States. President Donald Trump has continued to impose tariffs on Chinese goods and push for trade restrictions, which have led China to look for stronger economic relations with other markets, including India.
Indian stock markets responded positively to the news. Shares of fertilizer companies such as Coromandel International and Chambal Fertilisers rose by up to five percent and infrastructure-related firms also gained.
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