China Commits to Support India’s Rare Earth Needs Amid Border Negotiations
China has pledged to address India’s critical needs for rare earth materials, fertilizers, and tunnel boring machines during high-level diplomatic talks in New Delhi. Chinese Foreign Minister Wang Yi assured his Indian counterpart S. Jaishankar that Beijing would respond to these key concerns as both nations work to rebuild ties strained since the deadly 2020 border clash.
The commitment comes at a time when India is grappling with significant supply challenges. Chinese customs data reveals a 58% decline in rare earth magnet exports to India since January 2025. Despite possessing the world’s fifth-largest rare earth reserves at 6.9 million metric tons, India lacks domestic magnet manufacturing capabilities. As a result, it remains heavily dependent on Chinese imports for critical technologies including electric vehicles, electronics, and defense systems.
The diplomatic breakthrough comes as Prime Minister Narendra Modi prepares for his first visit to China since 2018. He will be attending the Shanghai Cooperation Organisation summit. The rare earth commitment is particularly significant for India’s manufacturing ambitions. Companies like Bajaj Auto have faced production halts due to magnet shortages. Some automakers are even projecting zero EV production for August.
- Key Points:
- China pledges to support India’s needs for rare earth materials, fertilizers, and tunnel boring machines.
- India faces a 58% decline in rare earth magnet imports from China since January 2025.
- Prime Minister Narendra Modi is preparing for his first visit to China since 2018.
- The rare earth commitment is crucial for India’s manufacturing ambitions.
Source: https://english.almayadeen.net/news/Economy/china-vows-rare-earth-support-to-india-amid-warming-ties