China has announced that it is lifting restrictions on the export of fertilizers, rare earth minerals, magnets, and tunnel boring machines to India. These were the three key requests that India had raised during the recent meeting between India’s External Affairs Minister S. Jaishankar and his Chinese counterpart Wang Yi. According to sources familiar with the matter, China has already begun responding to India’s requests, and shipments are reportedly underway. The Indian government expressed serious concerns over China’s abrupt restrictions on fertilizer exports, which disrupted the supply of Di-Ammonium Phosphate during the Rabi season. At the same time, tunnel boring machine shipments for important infrastructure projects in India, including those produced by foreign companies in China, had been put on hold.

India’s auto and electronics industries had also flagged concerns over Chinese restrictions on rare earth minerals and magnets, warning that shortages could seriously impact manufacturing. Security considerations drove these Chinese restrictions amid growing tensions between the two countries. Last month, Jaishankar and Wang met twice to address political differences following the successful disengagement of troops along the Line of Actual Control (LAC). Both sides agreed to gradually normalize relations, starting with the easing of economic restrictions and confidence-building measures.

This development comes at a time when India is under pressure from the US, with American officials criticizing New Delhi for its ties with Russia. The Trump Administration had imposed additional national security tariffs on India, bringing the total to 50%. While they have been tough on New Delhi, it has shown leniency toward Beijing by extending the trade truce, delaying tariffs by 90 days, and easing restrictions on the exports of high-end chips.