China Lifts Export Curbs, Trade With India Resumes
India confirmed that China has lifted certain export restrictions, paving the way for the resumption of supplies of key goods—namely rare earths, fertilizers, and tunnel-boring machines. This step marks a softening in trade relations at a time when diplomatic ties have been under strain.
This development followed a notable bilateral meeting in Tianjin between Prime Minister Narendra Modi and President Xi Jinping. Their discussions underscored a strategic reset in Asia’s major bilateral relationship, with both sides emphasizing the need to move beyond friction. India also said it is reviewing proposals related to the Shanghai Cooperation Organisation (SCO) Development Bank.
The removal of export curbs addresses urgent demands from India's critical sectors. Fertilizer shortages had posed a serious challenge ahead of the Rabi agricultural season, with Di-Ammonium Phosphate supplies constrained. Tunnel-boring machinery, essential for infrastructure projects including metro and road tunnels, had been held up, delaying multiple urban development initiatives. Meanwhile, rare earth magnets—vital for electronics, electric vehicles, and industrial production—had also been in short supply, affecting auto and manufacturing output.
The resumption of these exports is expected to deliver tangible benefits across agriculture, construction, and manufacturing. It is seen as a pragmatic confidence-building measure, signaling a willingness on both sides to stabilize ties amid broader geopolitical uncertainties. The gesture comes against the backdrop of rising trade tensions globally and growing economic pressure from Western nations.
Although the move is encouraging, experts caution that reopening trade channels is only a first step. Sustainable improvement will require deeper reforms such as diversifying supply chains, bolstering domestic capabilities, and engaging in multi-layered economic cooperation. Nevertheless, the easing of export curbs offers a valuable lifeline to India’s vital sectors and a diplomatic opening for renewed engagement between the two Asian powers.
This development followed a notable bilateral meeting in Tianjin between Prime Minister Narendra Modi and President Xi Jinping. Their discussions underscored a strategic reset in Asia’s major bilateral relationship, with both sides emphasizing the need to move beyond friction. India also said it is reviewing proposals related to the Shanghai Cooperation Organisation (SCO) Development Bank.
The removal of export curbs addresses urgent demands from India's critical sectors. Fertilizer shortages had posed a serious challenge ahead of the Rabi agricultural season, with Di-Ammonium Phosphate supplies constrained. Tunnel-boring machinery, essential for infrastructure projects including metro and road tunnels, had been held up, delaying multiple urban development initiatives. Meanwhile, rare earth magnets—vital for electronics, electric vehicles, and industrial production—had also been in short supply, affecting auto and manufacturing output.
The resumption of these exports is expected to deliver tangible benefits across agriculture, construction, and manufacturing. It is seen as a pragmatic confidence-building measure, signaling a willingness on both sides to stabilize ties amid broader geopolitical uncertainties. The gesture comes against the backdrop of rising trade tensions globally and growing economic pressure from Western nations.
Although the move is encouraging, experts caution that reopening trade channels is only a first step. Sustainable improvement will require deeper reforms such as diversifying supply chains, bolstering domestic capabilities, and engaging in multi-layered economic cooperation. Nevertheless, the easing of export curbs offers a valuable lifeline to India’s vital sectors and a diplomatic opening for renewed engagement between the two Asian powers.