Diplomatic talks in New Delhi saw Chinese foreign minister Wang Yi give assurances that Beijing would relax export curbs on fertilisers, rare‑earth minerals (including magnets) and tunnel‑boring machines — a move analysts say could ease immediate supply bottlenecks for Indian automakers if permits and clearances follow swiftly.
India’s auto sector is seeing a potentially brighter near‑term supply outlook as diplomatic engagement between New Delhi and Beijing appears to be easing some trade frictions. During a two‑day visit to New Delhi, Chinese Foreign Minister Wang Yi gave assurances to External Affairs Minister S. Jaishankar that Beijing would ease restrictions on exports to India of fertilisers, rare‑earth minerals (including magnets) and tunnel‑boring machines. Wang Yi also met Prime Minister Narendra Modi. NDTV Profit reported these assurances and cited analysts who said the relaxation would help ease supply pressures for automakers and original equipment manufacturers (OEMs).
Indian automakers had been particularly concerned after China imposed export controls in April 2025 on certain rare‑earth elements and related magnets. That move, which analysts and market reports said could disrupt supplies for electric vehicles and other industries, prompted industry calls for diversification of sources. NDTV Profit quoted analysts noting that lifting restrictions would help restore volumes and reduce reliance on more expensive alternatives, and it repeated a forecast from some market participants that it could take roughly three to four weeks for supplies to resume smoothly and for the effects to show up in company operations.
Separately, some outlets reported that shipments had begun to move. The Economic Times reported that Beijing had lifted export curbs on fertilisers, rare‑earth magnets/minerals and tunnel‑boring machines and said shipments had already resumed, while Reuters, citing Indian media on August 19, 2025, reported that China had lifted curbs on rare‑earth magnets to India. Those reports are specific to ET and the Reuters/Indian‑media accounts; NDTV’s reporting described assurances from Wang Yi and analysts’ expectations rather than asserting resumed shipments as a general fact.
Analysts and industry observers have highlighted components such as permanent magnet motors, sensors and ignition coils as among those affected by rare‑earth supply dynamics, a point reflected in NDTV Profit’s coverage. Anshul Jain, head of research at Lakshmishree, was quoted in NDTV Profit saying that lifting rare‑earth magnet export restrictions to India would “immediately ease supply bottlenecks for automakers and OEMs, allowing companies to restore volume targets, and reduce reliance on costly alternative sources.” The reporting also noted the market sensitivity given China’s large share of global refined rare‑earth supply and cautioned that administrative processes (permits, licensing and port clearance) would influence how quickly materials reach manufacturers.
The diplomatic engagement took place ahead of Prime Minister Modi’s planned attendance at the Shanghai Cooperation Organisation (SCO) summit in Tianjin later in August 2025. Sources described the visits and meetings as part of renewed high‑level contacts; the reporting does not establish that Modi’s SCO attendance caused the export decisions, only that the discussions occurred in the same diplomatic timeframe.
Market commentary and specialist reporting have underlined that China’s April 2025 controls targeted certain heavy and medium rare earths and related magnets and that easing those controls for India, where reported, can relieve some immediate pressures. At the same time, outlets such as Argus noted the broader complexity of rare‑earth policy, including dual‑use considerations and the need for permits that can affect shipment timing. The IEA’s wider analysis of critical minerals further underscores the strategic importance of diversification, recycling and expanding domestic capacity to reduce vulnerability to concentrated global supply.
In sum, NDTV’s coverage emphasised diplomatic assurances from Wang Yi and analysts’ expectations of supply relief within weeks, while Economic Times and Reuters/Indian media reported that shipments had been reported to have resumed. The practical impact on production volumes and costs will depend on how quickly permits are processed, shipments are cleared, and firms re‑establish supply lines.
Source: Noah Wire Services
