In a significant step toward strengthening economic cooperation, Chinese Foreign Minister Wang Yi has reassured India that Beijing is actively working to alleviate concerns over export limitations on essential commodities like fertilizers and rare earth minerals.
This development comes during Wang’s ongoing two-day diplomatic engagement in New Delhi, highlighting a positive shift in India-China relations following years of tension along the border.
Wang conveyed these assurances during his discussions with Indian External Affairs Minister S Jaishankar on Monday. According to sources close to the talks, the Chinese side has committed to tackling three major issues raised by India regarding recent trade barriers imposed by Beijing. These include restrictions that have affected supplies critical to India’s agriculture, technology, and infrastructure sectors.
Tackling Trade Barriers and Supply Chain Disruptions
The assurances focus on easing curbs that have disrupted India’s access to vital imports. For instance, rare earth minerals, which are essential for producing smartphones, electric vehicles, and other high-tech goods, have faced export controls from China, where it holds a dominant global position. These limitations have notably hampered Indian electric vehicle producers, prompting calls for smoother trade flows.
Similarly, fertilizer exports from China, a key supplier to India, were halted last year, leading to a sharp decline in shipments. Data from industry bodies indicate that urea imports from China dropped dramatically to around 100,000 tonnes in the 2024-25 period, down from 1.87 million tonnes the previous year.
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In response, India has secured alternative long-term deals, including a five-year agreement with Saudi Arabia for 3.1 million metric tonnes of di-ammonium phosphate (DAP) annually, which ranks as the country’s second-most important crop nutrient.
Additionally, delays in exporting large tunnel boring machines destined for the Ahmedabad-Mumbai high-speed rail project have been flagged. These machines are crucial for constructing a 21-km underground segment, with deliveries originally slated between late 2024 and early this year.
“Foreign minister Wang assured the external affairs minister that China is addressing India’s needs for fertilisers, rare earths and tunnel boring machines,” one source familiar with the discussions noted.
Jaishankar, in his remarks, emphasized the need to avoid “restrictive trade measures and roadblocks” in economic partnerships, echoing concerns he raised during their previous encounter in July.
He highlighted the importance of a “candid and constructive” dialogue grounded in mutual respect and sensitivity to navigate post-conflict challenges.
Advancing Border Talks and Global Stability
Beyond trade, the ministers explored avenues for deeper collaboration, including sharing river data, enhancing border trade, improving connectivity, and boosting people-to-people exchanges.
Jaishankar reiterated India’s push for progressing de-escalation efforts along the Line of Actual Control (LAC), where tensions escalated in 2020 following a standoff and a violent confrontation in Galwan Valley that strained ties to historic lows.
Wang’s visit marks the first by a Chinese minister since the two nations agreed last October to resolve the military impasse on the LAC. On Tuesday, he is set to engage with National Security Adviser Ajit Doval as part of the Special Representatives framework, the premier channel for resolving the enduring border dispute.
Following this, Wang will meet Prime Minister Narendra Modi, adding weight to the interactions ahead of Modi’s anticipated trip to China for the Shanghai Cooperation Organisation (SCO) Summit in Tianjin later this month.
A potential bilateral discussion with Chinese President Xi Jinping is also on the horizon, building on their recent meeting in Kazan, Russia, where they committed to revitalizing mechanisms for normalizing relations.
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The visit underscores broader geopolitical dynamics, including uncertainties from U.S. policies under the Donald Trump administration. Both leaders stressed the value of a multipolar world order, with Jaishankar noting the need for a “fair, balanced, and multipolar world order, including a multipolar Asia,” and the urgency of global economic stability.
Wang echoed this, warning that “unilateralism is running rampant” and that “free trade and the international order are faced with severe challenges.” He urged India and China, as leading developing nations, to champion “strength and dignity” for the Global South.
Signs of warming ties are evident in resumed initiatives, such as the Kailash Mansarovar Yatra to Tibet after a five-year pause, the reinstatement of tourist visas for Chinese citizens since 2020, and ongoing talks to restart direct flights and border commerce.
This evolving partnership signals a pragmatic approach to mending fences, fostering economic resilience, and contributing to regional harmony amid global shifts.
