Rare meaning
China has lifted the ban on the export of rare meaning digging machines on India as well as the supply of rare meanings. China has said that it has lifted the restrictions imposed to India on the export of fertilizers, rare earth minerals as well as tunnel digging machines.
According to the ET report, Chinese Foreign Minister Wang Yi on Monday assured Foreign Minister Jaishankar that China has started action on three important demands of India. According to sources, India has also started getting some shipments. India had clearly expressed its displeasure with China as the sudden ban on fertilizers (especially dye-amonium phosphate) affected the rabi season crops. Apart from this, China had also stopped supply of tunnel boring machines required for India’s infrastructure projects, including machines made in China of foreign companies.
Auto and electronics sector will benefit
Auto and electronics industry also expressed concern about the ban of Chinese on rare economy and minerals, as it could have affected the production. These bans were imposed between the two countries due to increasing stress and security reasons. However, after the return of the soldiers on LAC, Wang and Jaishankar met twice last month and the two countries gradually agreed to improve the relationship. This includes increasing confidence to relaxation of economic restrictions.
This agreement is also important because at this time the US has taken a tough stand against India. The Trump administration has criticized India’s relations with Russia and has imposed a total of 50% tariff with 25% additional National Security Tariff. On the other hand, the US has shown a soft trend towards China, extending the trade war ceasefire by 90 days, and has removed the ban on the export of high-tech chips.