China pledges to address India’s Rare Earth, Fertiliser and Tunnel-Boring equipment needs

August 20, 2025

New Delhi: Amid improving India–China relations and ongoing border talks, China’s Foreign Minister Wang Yi has assured Indian leaders that Beijing will address New Delhi’s pressing supply concerns.

At the 24th round of border discussions, National Security Advisor Ajit Doval told Wang Yi that “there has been an upward trend” in bilateral ties, noting that borders have remained calm and engagements have grown more substantial. Wang, in turn, emphasized the importance of maintaining stable and healthy relations for the mutual benefit of the two countries’ populations. He stressed the need to build mutual trust through dialogue and expand cooperation, particularly on sensitive issues like border control and demarcation. 

Earlier, according to an Indian source, Wang Yi assured External Affairs Minister Subrahmanyam Jaishankar that China is working to meet three key Indian demands: fertilizers, rare earth minerals, and tunnel boring machines.

While details remain sparse, it is unclear if China plans to expedite export licenses or introduce broader trade concessions specifically for India. Notably, although rare earth exports to Europe and the U.S. surged in June after easing export processing backlogs, shipments to India remain significantly lower—down 58% compared to January levels. India, despite holding the world’s fifth-largest rare earth reserves, lacks domestic magnet manufacturing and continues to depend heavily on Chinese imports for magnets and related components. 

This commitment from Beijing comes against the backdrop of sensitive geopolitical dynamics and follows a period of elevated tensions and border standoffs. The assurance is being seen as a confidence-building measure—an opportunity for India to diversify its supply chains amid continued reliance on China for critical industrial and infrastructural inputs.

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