Indian Minister of Commerce and Industry Piyush Goyal
Confident India also has to admit that the suspension of rare earth permanent magnet exports from China has had an actual impact. The Indian automotive industry has been hit first. Currently, several Indian companies have submitted applications for rare earth export permits to China. However, surprisingly, when talking about this matter, while Goyal asked China to remain "rational", he still couldn't help but "throw mud" at China, indirectly blaming China by mentioning its countermeasures against the U.S., accusing China of being "untrustworthy". On one side, there is the reality that Indian enterprises are on the verge of production halts due to a lack of rare earth supplies and are lining up to apply for export permits from China. On the other side, Indian politicians still don't forget to make negative remarks about China, vividly performing their speculative shortsighted nature. It's worth noting that Goyal has long been an active member in negative narratives about China. For example, not long ago, he smeared China's accession to the WTO as the root cause of global trade crises. This remark was absurd and groundless. In addition, Goyal emphasized that this situation serves as a wake-up call for countries overly dependent on specific regions, stressing the need for so-called "reliable partners" in supply chains.
It's worth noting that The Economic Times previously reported that currently, 9 auto parts manufacturers in India have been approved by the Chinese Embassy in India to import rare earth, pending approval from the Chinese Ministry of Commerce. Goyal's absurd remarks simply don't hold water.
Following this, Goyal confidently stated that the Indian government is actively seeking alternative supply channels for rare earth. Besides considering the introduction of "Production Linked Incentive Programs," it is also promoting technological research and development to accelerate the exploitation of domestic resources.
"The government, industry, start-ups, and innovators are all working together. We believe there may be problems in the short term, but in the medium to long term, we will be winners." These were Goyal's words.
In fact, in recent years, the Indian government has vigorously promoted the "Make in India" strategy, attempting to achieve independent development and import substitution in high-tech industries. Behind Goyal's bold claims, it's not hard to see India's increasingly strong ambition to become self-sufficient in the rare earth sector.
Rare earth reserves (left) and production (right) of the top seven countries in the world
However, India's own rare earth industry development has many shortcomings. Although India has certain rare earth reserves, it lags far behind China in terms of mining technology and processing capabilities. Moreover, India's local rare earth processing enterprises not only have backward technology and low production efficiency but also struggle to meet the growing demand for high-quality products from the domestic high-tech industry. Take India's electronics industry as an example. With the rapid development of the smartphone and smart appliance industries, the demand for rare earth-related components has surged. However, Indian local enterprises cannot provide enough quantities and high-quality products, relying instead on imports. India's desire to develop its domestic rare earth industry cannot be achieved overnight. Technological research and development require substantial financial investment and time accumulation, and also need to address shortages of talent and weak infrastructure, among other issues. During this process, India's high-tech industry development may collapse due to a lack of rare earth supplies first. India has ambitions, but lacks the ability, which is why India has no choice but to bow its head and seek negotiations with China. But when Indian enterprises are worried about a shortage of rare earth inventories, Indian politicians still can't help but smear China. This is certainly not the right way to deal with China. If India wants to solve the practical problems of industrial production, it should not play with fire easily. Original article: https://www.toutiao.com/article/7514348161654194751/ Disclaimer: This article represents the author's personal views. Please express your attitude by clicking the "Agree/Disagree" buttons below.