NEW DELHI: India’s trade relations with China are gradually showing renewed momentum, with negotiations underway to commence imports of rare earth magnets, according to a senior government official. The move comes amid Beijing’s recent tightening of export controls on critical minerals that are essential for electric vehicles, renewable energy systems and defence applications.
China has also issued visas to several Indian companies and both the countries are trying to figure out ways to ensure there is no disruption in the supply of rare earth magnets.
“Efforts are on (to restore rare earth magnet imports). In fact, the Embassy of China has issued visas to our companies. And these companies are in touch with the Chinese authorities. They are also trying to find ways and means by which the supply chain does not get impacted,” said the official.
While China has resumed shipments of rare earth magnets to companies in the US, Europe and Southeast Asia, Indian firms are yet to secure export licences. Beijing’s restrictions — aimed partly at countering US tariffs — have heightened concerns over supply security in strategic industries worldwide.
Following External Affairs Minister S Jaishankar’s recent meeting with Chinese Foreign Minister Wang Yi in Beijing, there has been some progress in bilateral trade and broader geopolitical ties.
Trade flows have been buoyant. Exports to China rose 20% to $5.76 billion in April-July 2025, up from $4.80 billion a year earlier, while imports climbed 13% over the same period from $35.96 billion to $40.66 billion, commerce ministry data show. “Trade is moving positively with China -- both exports as well as imports,” the official added.
The rare earth supply chain has become a focal point of India’s strategic trade planning. Securing stable access from China, the biggest global supplier, would help insulate Indian manufacturers in sectors such as EV and green industries.