China Issues Rare Earth Import Licences to Indian Firms Amid EV Production Concerns

China has issued rare earth import licences to Indian firms, crucial for electric vehicle production, amidst ongoing tensions and trade discussions with Beijing.

• The external affairs ministry of India announced that China granted licences to Indian firms for importing rare-earth element magnets, addressing supply concerns in electric vehicle production.
• This decision from Beijing follows recent restrictions on exports of critical minerals, which have impacted Indias electric vehicle manufacturing capabilities.
• Xi Jinping and Indian leadership have engaged in discussions to normalize relations, highlighting the importance of trade dynamics amid global supply chain challenges.