China Approves Imports: Four Indian companies - Hitachi, Continental, Jay Ushin, and DE Diamonds, have received licences from China to import rare-earth magnets.
The move follows China’s October 9 announcement of new export restrictions on rare-earths, batteries, and industrial diamonds.
Around 30 Indian firms are still awaiting approvals, with India’s foreign ministry actively intervening through diplomatic channels.
In a mitigating move on rare-earth magnet imports, four Indian companies have received licences to purchase rare-earth magnets from China, India’s foreign ministry said on Thursday. The move is seen to hint at easing export control by Beijing, which tightened the restrictions on rare-earth minerals and permanent magnets earlier this month.
China has a near-monopoly in the global rare-earth minerals (REM) and permanent magnets supply chain and has been leveraging this advantage against the US due to the tariff tussles between the two economies.
India’s foreign ministry spokesperson Randhir Jaiswal announced the licencing decision during the weekly press briefing but did not provide further details on the companies that got the approvals or the conditions attached to the licences. According to a Reuters report, Beijing agreed to delay the introduction of the latest set of rare-earth export restrictions as part of a deal agreed between Chinese President Xi Jinping and US President Donald Trump.
The Economic Times reported that Beijing’s conditions on the licences include a restriction on re-export to the US or usage for military purposes. ET cited sources and reported that the four companies in India which received the licences were Hitachi, Continental, Jay Ushin, and DE Diamonds.
On October 9, China’s export restrictions announcement included several new controls, including on electric battery equipment and industrial diamonds. The battery-related restrictions triggered panic amongst global customers about supply chain disruption. This even led Reliance Industries to accelerate shipments before the November 1 deadline, when the restrictions will come into effect, reports said.
30 Odd Indian Companies Still Await Approval
According to media reports, Indian companies have submitted end-user certificates (EUC) which guarantee that the imported components will not be used for manufacturing weapons. The EUCs also make it mandatory not to use these components for storing, producing, or processing weapons of mass destruction and their delivery systems. India imported 870 tonnes of rare-earth magnets worth ₹306 crore in FY25. The approvals for the licences follow active diplomatic intervention by the foreign affairs ministry, including Minister of External Affairs S. Jaishankar, who brought up the Indian industry’s concerns during his visit to China. Reports suggest nearly 30 applications from Indian companies are still awaiting approval from Chinese authorities.
