India says companies have licences to import rare earth magnets from China

NEW DELHI: Indian companies have received licences for importing rare earth magnets from China, India’s foreign ministry said on Thursday, signalling some easing in Beijing’s export control.

Rare earths, a group of 17 elements that play a crucial role in cars, planes and weapons, have become one of China’s most powerful tools of leverage amid its trade tensions with the US

India’s foreign ministry spokesperson Randhir Jaiswal announced the licencing decision at a media briefing but did not provide details on the companies that got approval, the number of licences issued or the conditions attached.

While rare earth elements are not scarce, China maintains a near-absolute dominance over the technology that processes the minerals into magnets.

Beijing has tightened exports of these processed materials to major economies, including India, this year in an effort to reinforce its geopolitical influence.

Earlier in the day, China agreed to delay the introduction of its latest round of rare earth export controls as part of a deal agreed between US President Donald Trump and Chinese leader Xi Jinping, but previous restrictions remain in place.