India Engages China Over Rare Earth Export Controls To Safeguard Supply Chains

New Delhi, Jun 13 (KNN) India has initiated discussions with China regarding export control measures on rare earth-related products, seeking greater predictability in bilateral trade consistent with international standards, according to the Ministry of External Affairs.

The dialogue follows China's announcement in early April of export controls on seven rare earth elements and related products critical to defence, energy, and automotive manufacturing sectors.

Ministry of External Affairs Spokesperson Randhir Jaiswal confirmed Thursday that Indian officials are engaging their Chinese counterparts both in New Delhi and Beijing to establish more reliable supply chain arrangements in accordance with global trade practices.

China's export restrictions were initially implemented as a response to tariffs imposed by the United States under President Donald Trump's administration.

However, the measures have created supply disruptions for manufacturers worldwide, particularly affecting automotive production in various countries including India.

The timing of these bilateral discussions carries additional significance as Trump and Chinese President Xi Jinping work toward finalizing a comprehensive trade agreement.

Industry observers note that such a deal may include Chinese commitments to ensure rare earth supplies to the United States, potentially leaving other nations facing continued supply uncertainties if separate arrangements are not secured.

Chinese officials have signalled openness to dialogue on the rare earth export controls. During a media briefing Thursday, Chinese Foreign Ministry Spokesperson Lin Jian indicated Beijing's willingness to engage with affected countries on the matter.

Lin Jian stated that China remains committed to enhancing dialogue and cooperation with relevant nations and regions to maintain stability in global industrial and supply chains.

The rare earth elements subject to these export controls are essential components in various high-technology applications, making supply chain reliability a critical concern for manufacturing sectors dependent on these materials.

(KNN Bureau)