China Ready to Export Fertilizers, Rare Earths and Tunnel Machinery to India

India and China have recorded a positive shift in their bilateral relations with Beijing agreeing to resume key supplies of fertilizers, rare earth minerals, and tunnel boring machines (TBMs). The assurance came from Chinese Foreign Minister Wang Yi during his meeting with External Affairs Minister S. Jaishankar in New Delhi on Monday.

A Breakthrough in Trade Ties

For nearly a year, China had halted exports of these critical commodities to India, creating challenges in agriculture, auto manufacturing, and infrastructure development. China contributes close to 30% of India’s fertilizer needs, rare earths are vital for auto parts and electronics, while TBMs play a central role in highway and metro projects. Wang Yi’s commitment to resume supply marks a significant breakthrough as both nations attempt to normalize ties.

Fertilizers, Minerals and Machines on the Table

Sources said Jaishankar raised the issue of urea, NPK and DAP fertilizers, rare earths, and TBMs during his visit to Beijing last month. The Chinese side has now confirmed that deliveries will restart, giving a much-needed boost to Indian farmers and infrastructure developers alike.

Border Issues Deferred to High-Level TalksInterestingly, boundary disputes and border talks were kept off the table during Jaishankar–Wang discussions. These matters will instead be handled by National Security Advisor Ajit Doval, who is scheduled to meet his Chinese counterpart in the Special Representative Dialogue. The talks will primarily focus on de-escalation along the 3,488 km Line of Actual Control (LAC), where troops remain deployed despite some tensions in Ladakh being eased.

India’s Stand on Taiwan Reiterated

On the sensitive issue of Taiwan, Jaishankar made it clear that India’s position remains unchanged. Like many countries, India continues only cultural and economic engagement with Taipei while maintaining its long-standing policy of not recognizing Taiwan politically.

The US Factor in the RoomWhile the talks were cordial, the presence of US President Donald Trump’s policies loomed large. Both Indian and Chinese leaders acknowledged that Washington’s evolving stance could impact them significantly. The common understanding was that closer dialogue between New Delhi and Beijing would help them navigate the uncertainty emerging from US decisions.

Looking Ahead

Although the thorny boundary issue still awaits detailed discussions, China’s move to reopen the flow of fertilizers, rare earths, and TBMs is being seen as a big step in the right direction.