China has requested India to ensure that rare earth magnets supplied will not be re-exported to the United States and will be used only for domestic purposes.
India has not yet agreed to these demands but has provided end-user certificates assuring the materials won’t be used for weapons of mass destruction.
China is expanding export restrictions on rare earth magnets and seeks additional export control commitments, similar to the Wassenaar Arrangement, to safeguard strategic materials.
China’s New Rare Earth Curbs Deepen Supply Risks For India
China currently produces over 90% of the world’s processed rare earths and magnets, which are critical components in electric vehicles, aircraft engines, and radar systems.
Summary
China has reportedly asked India to provide assurances that the rare earth magnets it supplies will not be re-exported to the United States, but instead used only for domestic purposes. The move is part of Beijing’s broader tightening of control over the global rare earth supply chain, particularly in sectors like defence, semiconductors, and clean energy.
China currently produces over 90% of the world’s processed rare earths and magnets, which are critical components in electric vehicles, aircraft engines, and radar systems. According to officials, India has not yet agreed to the Chinese demand, which is seen as an attempt to prevent these strategic materials from indirectly reaching the US.
New Delhi has already submitted end-user certificates, assuring that the materials won’t be used for manufacturing weapons of mass destruction. However, Beijing is now seeking further export control commitments similar to those outlined in the Wassenaar Arrangement, an international framework that governs trade in sensitive and dual-use technologies. While India is a member of that arrangement, China is not, and it has been expanding its list of export restrictions to cover more types of rare earth
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