In a significant step toward strengthening economic ties, China has committed to addressing India’s critical supply chain concerns, particularly regarding fertilisers, rare earth minerals, and tunnel boring machines. During a high-level meeting on Monday, Chinese Foreign Minister Wang Yi assured External Affairs Minister S Jaishankar that Beijing is actively working to ease restrictions on these vital resources, authoritative sources confirmed on Tuesday. The assurance comes as part of ongoing efforts to rebuild bilateral relations strained since the 2020 Galwan Valley clashes.
Wang’s two-day visit to India, which began on Monday, underscores a thaw in India-China relations, with discussions covering trade, border issues, and people-to-people exchanges. Jaishankar, reflecting on a “difficult period” in ties, emphasized a “candid and constructive” approach, urging both nations to prioritize mutual respect, sensitivity, and interest. The Chinese commitment to address India’s needs for fertilisers, essential for agriculture, and rare earth minerals, crucial for high-tech industries like electric vehicles, drones, and battery storage, signals a potential boost for Indian manufacturing and food security.
The talks also touched on tunnel boring machines, vital for India’s infrastructure projects like metro systems and highways. China’s dominance in the global supply chain for rare earths, controlling over 90% of magnet production, has raised concerns in India, especially after Beijing’s export restrictions in response to U.S. tariff hikes. Jaishankar had raised these issues during his July 2025 visit to Beijing, and Wang’s assurances mark progress in addressing India’s vulnerabilities in critical sectors like electronics, automotive, and defense.
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Wang’s visit includes a fresh round of Special Representatives (SR) dialogue with National Security Advisor Ajit Doval, focusing on the Line of Actual Control (LAC) in eastern Ladakh. Both sides are expected to explore new confidence-building measures and review the situation following the October 2024 disengagement agreement at Demchok and Depsang, which ended a four-year military standoff. Despite the withdrawal of troops from friction points, each side still maintains 50,000–60,000 troops along the LAC, highlighting the need for further de-escalation.
The warming of ties is evident in recent initiatives, such as the resumption of the Kailash Mansarovar Yatra and India’s reissuance of tourist visas to Chinese nationals. These steps, coupled with agreements on border trade and connectivity, reflect a mutual desire to move beyond the 2020 tensions. With Prime Minister Narendra Modi set to attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin from August 31, Wang’s visit lays the groundwork for deeper cooperation, potentially stabilizing economic and geopolitical ties amid global uncertainties like U.S. tariffs and the Ukraine conflict.
India’s push to diversify its rare earth supply through partnerships with countries like Australia, the U.S., and Kazakhstan, alongside domestic initiatives like the National Critical Mineral Mission, complements China’s assurances. The commitment to address fertiliser supplies is particularly timely, as India seeks to ensure agricultural stability amid global price volatility. As both nations navigate a complex geopolitical landscape, this development signals a pragmatic step toward mutual benefit and regional stability.
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