NEW DELHI (Reuters) -Indian companies have received licences for importing rare earth magnets from China, India’s foreign ministry said on Thursday, signalling some easing in Beijing’s export control.
Rare earths, a group of 17 elements that play a crucial role in cars, planes and weapons, have become one of China’s most powerful tools of leverage amid its trade tensions with the U.S.
India’s foreign ministry spokesperson Randhir Jaiswal announced the licencing decision at a media briefing but did not provide details on the companies that got approval, the number of licences issued or the conditions attached.
While rare earth elements are not scarce, China maintains a near-absolute dominance over the technology that processes the minerals into magnets.
Beijing has tightened exports of these processed materials to major economies, including India, this year in an effort to reinforce its geopolitical influence.
Earlier in the day, China agreed to delay the introduction of its latest round of rare earth export controls as part of a deal agreed between U.S. President Donald Trump and Chinese leader Xi Jinping, but previous restrictions remain in place.
Beijing significantly expanded its rare earths export controls this month to include five new elements and added dozens of refining technologies to its control list. The rules also require foreign producers that use Chinese materials to comply with China’s export-control system.
China’s export control announcements on October 9 also included new restrictions on electric battery equipment and industrial diamonds.
The battery-related restrictions triggered a rush among global customers, including India’s Reliance Industries, to accelerate shipments before the early-November deadline.
China’s export controls on rare earths have highlighted the risks of being dependent on one supplier. The curbs, introduced in April, triggered shortages that threatened to disrupt global car production.
(Reporting by Shivam Patel and Surbhi Misra; editing by Sudipto Ganguly and Ed Osmond)
