Indian officials discussed China’s rare earth restrictions during talks with that country’s vice foreign minister this week, people familiar with the matter said, as automakers continue to warn of a looming shortage that may disrupt output in the South Asian nation.

The issue was raised during a meeting on Thursday between Foreign Secretary Vikram Misri and China’s Vice Foreign Minister Sun Weidong in New Delhi, the people said, asking not to be identified because the discussions were private. The two sides agreed to hold further talks about critical mineral supplies and broader economic and trade issues, they said.  

China’s export curbs on rare earth magnets — used in everything from smartphones to electric vehicles — are causing delays in shipments of auto parts to India, worrying carmakers about major disruptions to production. There are some signs that Indian automakers may be facing tougher conditions than their counterparts in other countries in securing the supplies from China, with Beijing rejecting some applications for India-bound shipments. 

In a readout of the meeting between Misri and Sun, India’s Ministry of External Affairs didn’t specifically refer to the discussion about rare earths, although it hinted at ongoing talks. 

“The two sides agreed to hold certain functional dialog including in the economic and trade areas to discuss and resolve specific issues of concern,” the ministry said on Friday, without providing details of any future meetings. 

China’s Ministry of Foreign Affairs said in a statement that Sun and Misri “held a candid and in-depth exchange of views on bilateral exchanges and cooperation as well as international and regional issues of mutual interest.” 

Indian carmakers have been lobbying the government to push China to ease restrictions on rare earth magnets. They’re also planning to visit Beijing this month to make their case to officials and suppliers there, people familiar with the matter said. A proposed delegation of about 20 members from auto and component firms is awaiting support from the Chinese embassy to secure appointments in Beijing, they said.

The fact that India has now raised the rare earth issue with China in a diplomatic forum signals to automakers that a resolution may be in sight. Recent trade talks between the US and China have also increased optimism that restrictions may be eased.   

The two-day visit by Sun follows Misri’s trip to Beijing in January, and comes as both countries take steps to rebuild ties following the end of a four-year border stalemate. President Xi Jinping and Prime Minister Narendra Modi pledged in October last year to stabilise relations. Global uncertainty triggered by US President Donald Trump’s upheaval of trade have also added to the urgency for the Asian neighbours to normalise ties. 

After the deadly border clashes in 2020, India increased legal scrutiny to discourage Chinese investments, banned thousands of mobile phone applications and curbed visas. 

The two sides agreed during the talks this week to speed up the process to restart direct flights and take “practical” steps to facilitate visas, the MEA said in its statement Friday.

Officials “agreed to continue to stabilise and rebuild ties with priority on people-centric engagements,” the MEA said.

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Published on June 13, 2025