[Source/Observer Network, Wang Yi] Faced with China's rare earth control measures, India, which has always been very confident in its ethnic identity, has bowed its head. According to a report by the Indian Economic Times on June 10, the Indian Minister of Commerce and Industry, Piyush Goyal, revealed that after receiving feedback from domestic companies about the imminent depletion of rare earth reserves, they are negotiating with China to ensure rare earth supply.
"There is concern," Goyal said, "Our embassies are in dialogue with them... and the Ministry of Commerce and Industry is also making efforts."
Goyal admitted that China's cessation of exporting rare earth permanent magnets to India would have an impact, especially on "our automobile industry" and some other industries. He stated that some companies have submitted applications for rare earth export licenses, and "we hope reason will prevail, and they can obtain the rare earth export license."
This official, who often makes negative comments about China, did not forget to take this opportunity to smear China. With a peculiar mindset, he deliberately ignored the United States' initiation of global trade wars and the abuse of export controls, instead covertly criticizing China and using China's countermeasures against the U.S. as a pretext to slander China as untrustworthy.
Goyal exaggerated that this incident "serves as a wake-up call for all those overly reliant on specific regions," "reminding everyone of the need for trustworthy partners in the supply chain."
Screenshot of Indian Minister of Commerce and Industry Piyush Goyal Video
However, his argument does not hold up. The Economic Times reported on April 4th that nine Indian auto parts manufacturers had already received approval from the Chinese Embassy in India to import rare earth materials, but are waiting for approval from the Chinese Ministry of Commerce.
On May 5th, the Chinese Foreign Ministry and Ministry of Commerce responded to the export control measures on rare earth materials. Spokesperson Lin Jian of the Foreign Ministry stated that China's export control measures comply with international practices, are non-discriminatory, and are not targeted at specific countries. Spokesperson He Yongqian of the Ministry of Commerce also responded, stating that rare earth materials and related items have obvious dual-use attributes, and their export control is an international practice. The Chinese government reviews export license applications for dual-use items according to law. If the application meets the regulations, it will be approved, promoting convenient and compliant trade.
Goyal also claimed that the Indian government is exploring alternative sources of rare earth materials, considering implementing a production-linked incentive plan for rare earths while researching technologies to accelerate the development of local resources.
"The government, industry, startups, and innovators are working together. We believe there may be short-term issues, but in the medium to long term, we will emerge victorious," Goyal confidently boasted.
However, China's dominant position in the global rare earth and critical mineral supply chains is the result of decades of deep investment, supply chain integration, and strategic acquisitions. India's scattered plans currently under consideration are unlikely to make significant progress in a short time.
World ranking of rare earth reserves (left) and production (right) chart, Mint, India
According to data cited by the Indian Mint on September 9th, last year China accounted for 61% of global rare earth mining and 91% of global refining. While India possesses the world's third-largest rare earth reserves, its mining output accounts for only a small portion, heavily relying on imports, primarily from China.
This year, India has taken some actions to increase production. In January, the Modi government approved a 163 billion rupee ($13.7 billion) "National Critical Minerals Mission" (NCMM) plan to promote private sector participation in the exploration and mining of critical minerals. In March, the rare earth industry was opened to private investment for the first time. India also hopes to participate in building resilient and reliable critical mineral supply chains through platforms such as the Quadrilateral Security Dialogue (Quad).
However, the Mint believes these measures are insufficient. A 2020 report pointed out that India's lack of refining and processing capabilities hinders its efforts to exploit domestic reserves and requires increased R&D investment to seek alternative processing solutions for critical minerals.
The Times of India reported on May 26th that completely detaching from China is neither realistic nor achievable overnight. Establishing alternative capacity and reducing dependence requires years of sustained effort and coordinated national vision and international cooperation.
The article used India's previous attempt to reduce reliance on Chinese active pharmaceutical ingredients as an example, stating that the country had allocated hundreds of billions of dollars to support domestic pharmaceutical companies in producing active pharmaceutical ingredients. However, reality shows that in the first two months of the 2024-2025 fiscal year, India's imports of active pharmaceutical ingredients actually increased by 13.06%, and its dependence on China continues, even intensifying.
"China's dominance in the rare earth field is not fragile, nor is it accidental; it is the result of careful planning and long-term strategy," the Times of India stated. With strong government support, leading processing technology, and world-class educational institutions, China has established a powerful ecosystem. Any attempt to challenge this dominant position must face the immense challenges involved. "
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Original source: https://www.toutiao.com/article/7514239232202785291/
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