*China has grip over 90 % of crucial REEs vital for technologies like EV motors, smartphones, missiles and many more
External affairs minister S Jaishankar on Monday told his Chinese counterpart Wang Yi that there are various dimensions to relations between major economies like India and China and in this context, it is essential that restrictive trade measures and roadblocks are avoided
Normalising people-to-people exchanges can foster mutually beneficial cooperation, he said, adding that stable bilateral ties can be built only on the basis of mutual respect, mutual interest and mutual sensitivity.
“It is also essential in this context that restrictive trade measures and roadblocks are avoided,” he said, apparently referring to China’s curbs on exports of rare earth minerals that are used in various technologies from smartphones to electric vehicles and in which Beijing has an almost complete control.
The EAM was in China for a meeting of foreign ministers of the Shanghai Cooperation Organisation (SCO).
Those in know of the recent developments on REEs say that restrictions on exports have been officially raised through diplomatic channels by India.
China and REEs
The 17 REEs, including 15 lanthanidesCLanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium—and Scandium and Yttrium.
Almost indispensable in advanced technologies, strategic resources of these REEs are now shaping international relations, determining a nation’s technological leadership, military capability and energy transitions.
In April China imposed export restrictions on 7 out of the 17 rare earth elements like Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium and Yttrium as retaliation against US tariffs imposed by President Donald Trump
.It was not a total ban but restrictions tightened export licences, enabling China to limit global shipments.
Companies now need special export licenses to export them.
Basically, China’s grip on over 90 % of these resources is now compelling nations to trade on its terms
India and REEs
These seven REEs are designated critical minerals by the Ministry of Mines.
They are vital for technologies like EV motors, smartphones, missiles and many more.
As a result of the restrictions, Indian importers are facing a 40 to 45 days procurement process. as per reports.
Automobiles are among the largest users of REEs.
India’s auto sector, including EV manufacturers, is particularly alarmed as absence of even one element can halt assembly lines.
The production could be severely impacted if licensing obligations persist, increasing uncertainty around production schedules and output.
