During his two-day visit to China (13–15 July 2025) for the SCO Foreign Ministers’ meeting, External Affairs Minister S. Jaishankar publicly urged Beijing to remove its restrictive export regime on rare-earth elements and associated magnets—materials India’s EV, electronics and defence sectors can no longer take for granted.
What he said: In opening remarks to Chinese Foreign Minister Wang Yi, Jaishankar warned that “restrictive trade measures and roadblocks” must be avoided if the two neighbours are to normalise ties and deepen economic cooperation.
What prompted it: Since 4 April 2025, China has required special export licences and end-use declarations for seven rare-earth oxides and magnets; Indian consignments have been stuck in Chinese ports for weeks, forcing car-makers such as Maruti Suzuki and JSW MG Motor to slow production.
What India wants: New Delhi is not asking for charity; it wants predictable, licence-free flows of neodymium-iron-boron magnets and dysprosium/terbium additives so that a ₹1,345 crore domestic magnet-manufacturing scheme (approved last week) can source feedstock until Indian mines and refineries come on-stream.
Next step: While no formal “request” document has been disclosed, sources say Jaishankar handed Wang Yi a non-paper listing the HS codes of items most affected and asked for expedited clearances “within 30 days”.
Likely response and action from China:
– 30-day deadline: Jaishankar asked for a response “within 30 days”. Chinese ministries usually need longer for internal vetting, so a partial, rolling approval is the realistic ceiling.
– Military carve-out: Any magnets that can plausibly feed India’s missile or fighter-jet programmes will remain blocked, following the precedent set with the USeless.
– Geopolitical linkage: If another border incident flares, Beijing could freeze approvals overnight—its 2010 REE embargo against Japan is the template analysts cite.
Bottom line: Expect short-term relief with strings attached, not a full lifting of restrictions.
