China resumes rare earth magnet exports to India

VTV.vn - China has granted Indian businesses licenses to import rare earths, promoting bilateral relations after more than four years of border tensions and boosting Indian industry.

Rare earths are shipped for export at Lianyungang in Jiangsu province, China. (Photo: AFP/VNA)

India's Ministry of External Affairs confirmed that China has granted licenses to some Indian companies to import rare earth magnets - a move seen as a positive step in the process of normalizing bilateral relations after more than four years of border tensions.

According to a VNA reporter in New Delhi, on October 30, Indian Foreign Ministry spokesman Randhir Jaiswal said that with this license, Indian businesses will have access to magnets that had been stopped from being purchased after China imposed export restrictions earlier this year.

Industry sources said the licensed companies were mainly active in the manufacturing of auto and electronics components, but the imports came with a number of conditions, including that the magnets could not be exported to the US or used in defense industries.

It is estimated that the Indian auto industry alone will need about 870 tonnes of rare earth magnets in the financial year 2025-2026, accounting for nearly 25% of the country's total demand of 3,600 tonnes.

The new move is seen as a signal that the two countries are trying to restore trust and economic cooperation, after Beijing stopped exporting many goods - including minerals and fertilizers - to India from 2023. China currently holds about 70% of global rare earth production, playing a key role in the supply chain for electric vehicles, drones and energy batteries.

The import licensing was carried out in the context of China and India continuously taking measures to improve relations, such as resuming the Kailash Mansarovar Yatra pilgrimage route, restoring tourist visas for Chinese citizens and completing troop withdrawal from the Demchok and Depsang border hotspots according to the agreement reached in October last year./.

Source: https://vtv.vn/trung-quoc-noi-lai-xuat-khau-nam-cham-dat-hiem-cho-an-do-100251101101425744.htm