India Engages China To Resolve Rare Earth Magnet Export Restrictions

(MENAFN- KNN India) New Delhi, Jun 17 (KNN) India is actively pursuing a diplomatic and commercial resolution with China over recent export restrictions on rare earth magnets, which are critical to the country's automobile and consumer electronics industries, according to a report by PTI.

The government hopes that ongoing discussions will help ease supply disruptions caused by China's new licensing requirements.

China's revised export regime, effective April 4, mandates special licences for the shipment of seven key rare earth elements and their related magnets-materials such as samarium, gadolinium, terbium, dysprosium, and lutetium.

These elements play a crucial role in the manufacture of electric motors, braking systems, smartphones, and strategic technologies including missile systems.

Commerce Secretary Sunil Barthwal confirmed that the restrictions are global in nature and not targeted specifically at India.

However, Indian automakers and appliance manufacturers have raised concerns over delayed shipments and have urged the government to intervene.

“The impact is more pronounced in the auto sector,” Barthwal said, noting that the government is in close contact with industry bodies including the Society of Indian Automobile Manufacturers (SIAM) and the Automotive Component Manufacturers Association of India (ACMA).

To mitigate the impact, the Indian government is facilitating dialogue between domestic automotive firms and their Chinese vendors.

Additionally, both the Ministry of External Affairs and the Department of Commerce have been engaging directly with the Chinese Ambassador in New Delhi.

“We are making all efforts to ensure that essential imports continue. I believe these diplomatic and commercial conversations will yield a positive outcome,” Barthwal stated.

(KNN Bureau)

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