‘We are examining…’: MEA express hope after China grants licenses for rare earth mineral export to India

China grants licenses for rare earth mineral export to India

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The Ministry of External Affairs (MEA) on Thursday said that China has given licences to specific Indian companies to import rare earth magnets from it. The move is a first major sign, in more than four years, of improvement in ties between the two neighbouring countries as the decision to loosen restrictions on imports of rare earth minerals to India showed efforts by the two adversaries to normalise the bilateral ties that were strained after the military face-off along the LAC in eastern Ladakh.

“Some Indian companies have received licenses for importing rare earth magnets from China,” External Affairs Ministry spokesperson Randhir Jaiswal said at his weekly media briefing. However, he did not explain anything about it.

During the briefing, Jaiswal also confirmed that some Indian firms have received licences to import rare earth magnets from China following recent US-China trade talks in South Korea. “We are examining how the relaxations between the US and China may impact India,” he said.

Rare earth minerals are important for high-end technology products such as electric vehicles (EVs), drones, and battery storage. China has been at the center of the supply chain of the crucial minerals globally as it is the most powerful player with 70 per cent of the total rare earth mining under it. For India, a continuous supply of rare earth minerals is crucial to lead an economic growth.

China used to export huge quantities of fertiliser to India till 2023. However, since last year, Beijing stopped supplies to many countries. Although it removed restrictions in June but did not do so for resuming exports to India. More than two weeks ago, China announced new restrictions on the export of technologies and equipment linked to the mining and processing of rare earth minerals, lithium batteries, and rare earth-based superhard materials.

In the last few months, the two sides initiated a number of activities to renew the severed ties, for example, resuming Kailash Mansarovar Yatra and India resuming issuance of tourist visas to Chinese nationals.

The decision to revive various dialogue mechanisms between India and China was taken at a meeting between Prime Minister Narendra Modi and Chinese President Xi Jinping in the Russian city of Kazan in October last year.

US President Donald Trump and Chinese President Xi Jinping met on October 30 on the sidelines of APEC Summit.  

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