China has reportedly assured India that it is addressing concerns regarding the supply of fertilizers, rare earth minerals, and machinery. This development comes after External Affairs Minister S. Jaishankar met with Chinese Foreign Minister Wang Yi last month, where these issues were brought to the forefront.
During Wang Yi's two-day visit to India, he conveyed to Jaishankar that China had already begun responding to India's requests regarding these three specific items. Sources suggest that shipments have already resumed.
India had previously raised concerns with China about restrictions on fertilizers, which were impacting the availability of Di-Ammonium Phosphate during the Rabi season. Additionally, shipments of tunnel boring machines destined for key infrastructure projects in India, including those manufactured by foreign entities in China, had been put on hold. The auto and electronics industries had also expressed concerns about Chinese restrictions on rare earth magnets and minerals, which were leading to shortages that could have a detrimental impact on production.
These restrictions were reportedly driven by security concerns stemming from growing tensions between the two countries. However, meetings between Wang and Jaishankar last month aimed to address political differences.
The resumption of supplies is viewed as a significant breakthrough in bilateral ties. China accounts for a substantial portion of India's fertilizer imports, approximately 30%, and is also a key supplier of rare earth minerals for the automotive sector and tunnel boring machines for infrastructure projects.
Earlier reports indicated that China had been blocking exports of specialty fertilizers to India for several months. These fertilizers are crucial for enhancing crop yields in high-value crops like fruits and vegetables. India imports a significant amount of these fertilizers from China. Concerns were raised that Chinese authorities were delaying inspections of consignments meant for Indian buyers, effectively stalling exports without an official ban.
India's rare earth reserves are reportedly the third largest in the world. However, domestic production is limited, making the country reliant on imports, particularly from China, which controls a large share of the global rare earth production.
Jaishankar also reiterated India's position on Taiwan, emphasizing that while New Delhi maintains diplomatic, economic, and cultural ties with Taiwan, there has been no change in its stance.