Relief for India as China agrees to lift curbs on rare earth, fertiliser exports

Wang Yi, S Jaishankar

NEW DELHI: External affairs minister S Jaishankar’s meeting with counterpart Wang Yi saw efforts by both sides to address each other’s concerns and interests, with Beijing agreeing to remove curbs on export of fertilisers, rare earth minerals and tunnel boring machines to cater to India’s needs. Indian authorities said these were three key concerns raised in the meeting.Both sides also agreed to re-opening border trade through designated trading points, namely Lipulekh, Shipki La and Nathu La.Wang brought up Taiwan and Jaishankar stressed there had been no change in India’s position. Like most other countries, India follows a One-China policy. However, as external affairs ministry said, India emphasised that like the rest of the world it has a relationship with Taiwan focused on economic, technology and cultural ties, and this would continue. EAM raises with Wang trade curbs, dam on Brahmaputra The Indian side noted that China also cooperates with Taiwan in these very domains,” the ministry said.India was among the first non-socialist countries to recognise People’s Republic of China in 1950. While it never abandoned its One China policy, India stopped publicly articulating the same 15 years ago amid growing differences with Beijing on issues related to J&K and Arunachal Pradesh. Like most other countries, India doesn’t have formal diplomatic or political ties with Taiwan. Jaishankar also underlined India’s concerns with regard to the mega dam construction being undertaken by China in the lower reaches of the Yarlung Tsangpo (Brahmaputra), which will have implications for lower riparian states, said MEA.In the meeting on Monday, Jaishankar for the second time this year raised issues related to trade restrictions imposed by China. He had flagged it last month in a meeting with Wang on the margins of the SCO foreign ministers’ meeting.China announced in April its decision to implement export controls on certain rare earth items. According to MEA, govt remained in touch with the Chinese side, in Beijing as well as in Delhi, to bring “predictability in supply chain for trade consistent with international practices”. India’s rare earth magnet import dependency on China has hovered at 80%-85% in the past three years. India has set up National Critical Mineral Mission to increase domestic capacity and build supply chain resilience in critical minerals.India had earlier also taken up with China the issue of restricted fertiliser supplies. Indian companies had in fact signed long-term agreements with their Saudi counterparts last month for continued supplies of DAP, the fertiliser most used in India after urea. China is one of the countries India has been dependent on for DAP supplies.A foreign ministry spokesperson in Beijing did not confirm if China was going to review export licences or if it was making an exemption for India but said China stood ready to strengthen dialogue and cooperation with relevant countries and jointly keep global industrial and supply chains stable.In his meeting with Jaishankar, Wang had said “in today’s world, the changing situation is evolving rapidly, unilateral bullying practices are rampant, and free trade and the international order face severe challenges”. Jaishankar too had underlined the imperative of working towards ensuring a stable global economy.