Some companies in India get China licences to import REMs, says MEA

MEA confirms licences for Indian companies to import rare earth magnets from China; also announces US waiver on Chabahar port sanctions for six months

Some  companies in India have received licences to import rare earth magnets (REMs) from China, said Ministry of External Affairs (MEA) Spokesperson Randhir Jaiswal at his weekly media briefing on Thursday. 

At least four companies — Continental India, DE Diamond, Hitachi, and Jay Ushin — have secured the necessary Chinese licences, according to sources. They submitted end-user certificates required under Beijing’s export control regime, ensuring the materials will not be diverted to the United States (US) or used for defence production. 

In his media briefing, Jaiswal also noted that the US has granted India a six-month waiver, effective October 29, from sanctions on the Chabahar port project in Iran, where India has played a central role in development. 

 

On trade negotiations, he said New Delhi remains “engaged with the US on finalising the trade deal”. External Affairs Minister S Jaishankar and US Secretary of State Marco Rubio met earlier this week on the sidelines of the East Asia Summit in Kuala Lumpur, where discussions are believed to have touched on the pending trade deal.  

Jaiswal also told reporters India is assessing how Thursday's understanding between Washington and Beijing on rare earths might affect its own interests. These comments came hours after US President Donald Trump and Chinese President Xi Jinping met in Busan, South Korea, where Beijing agreed to delay by a year the introduction of its latest round of rare earth export restrictions, originally slated to take effect on November 8. 

The four aforementioned firms granted import licences are key suppliers to the Indian automobile industry, which has been hit hard by China’s curbs on exports of rare earth materials -- essential components in electric vehicles, wind turbines, smartphones, aircraft and weapons systems. 

New Delhi had raised the issue during Chinese Foreign Minister Wang Yi’s visit to India in August, ahead of Prime Minister Narendra Modi’s meeting with Xi in Tianjin on the sidelines of the Shanghai Cooperation Organisation Summit. China had then promised to resume exports of rare earths and fertilisers, later seeking end-use certification from Indian buyers. 

Jaiswal said the government is also examining the implications of recent US sanctions on Russian energy giants Lukoil and Rosneft. “Our decisions naturally take into account the evolving dynamics of the global market,” he said, adding that India’s energy policy is driven by the need to “secure affordable energy from diverse sources to meet the energy security needs of our 1.4 billion people.” 

In a related comment, Trump told reporters aboard Air Force One that India had been “very good” on reducing oil imports from Russia, while noting that China continues to purchase large volumes. Trump said Xi has been “buying oil from Russia for a long time. It takes care of a big part of China. And, you know, I can say India's been very good on that front.” 

On the Chabahar port waiver, Jaiswal confirmed that India’s exemption from US sanctions will run for six months. The US had earlier indicated that activities linked to the Iranian port could attract penalties under the Iran Freedom and Counter-Proliferation Act, revoking a waiver granted in 2018. Chabahar forms a key node in the International North–South Transport Corridor connecting India with Central Asia and Europe. 

With the Quad Summit unlikely to be held this year, Jaiswal said the grouping -- comprising India, Japan, the US, and Australia -- “remains a valuable forum for discussions on shared interests,” adding that any leaders’ summit is arranged “through diplomatic consultations among the four partners.” 

Amid renewed tensions between Pakistan and Afghanistan, the MEA reiterated India’s support for Kabul. “Pakistan is infuriated with Afghanistan exercising sovereignty over its own territories,” Jaiswal said. “It seems to think it has the right to practise cross-border terrorism with impunity. Its neighbours find it unacceptable. India remains fully committed to the sovereignty, territorial integrity and independence of Afghanistan.”