Some Indian Firms Have License For Rare Earth Imports From China, MEA Confirms

Certain Indian companies have received the license to import rare earth minerals from China, the Ministry of External Affairs confirmed in its weekly media briefing on Thursday.

The move comes after China eased some of its export controls on rare earths, following a meeting between US President Donald Trump and Chinese President Xi Jinping aimed at reducing trade tensions between the two major economies.

Rare earths, a set of 17 critical elements used in cars, aircraft and defence systems, have emerged as one of China's strongest levers in its trade disputes with the US. Although these elements are not rare in nature, China holds near-total control over the processing technology required to convert them into high-value magnets.

This year, Beijing tightened exports of processed rare earth materials to key economies, including India, as part of a strategy to reinforce its geopolitical influence.

Earlier on Thursday, China agreed to delay the implementation of its latest round of export restrictions as part of the understanding reached between Trump and Xi, though earlier curbs remain in effect.

China has expanded its export control list, adding five new rare earth elements and dozens of refining and processing technologies. Under the new rules, foreign companies using Chinese materials must comply with China’s export-control framework.

Donald Trump had recently said he had an "amazing meeting" with Xi Jinping, the first sitdown between the two leaders since the former's return to the White House. Trump announced that the US will slash tariffs on China by 10%, among other key outcomes from the high-profile meeting.

The trade war détente would see the US halve fentanyl-related tariffs on Chinese goods. The US president said China also agreed to resume soybean purchases.