China to export rare earth minerals to India

There has been a major breakthrough in diplomatic relations between India and China. Beijing has decided to export rare earth minerals, which are very important for India's defense and semiconductor industries, by lifting a long-standing ban.

According to the Economic Times, Chinese Foreign Minister Wang Yi met with Indian Foreign Minister S Jaishankar in New Delhi on Monday (August 18) evening. The meeting discussed bilateral relations, trade and regional stability issues. During this time, China assured to maintain the supply of three main concerns of India - fertilizer supply, rare magnetic minerals and tunnel boring machines.

Rare earth minerals or rare earth elements are 17 types of elements, which are essential in modern technology and defense industry. Their use is immense in making mobile phones, computer chips, electric vehicle batteries, wind turbines, satellites, radars and missiles. For this reason, these minerals are called the 'oil of the 21st century'.

China controls about 60-70 percent of the world's total production. They have a monopoly not only on mineral extraction, but also on processing and supply systems. As a result, all industrialized countries, from the United States, Europe, Japan to India, are dependent on China in one way or another.

China's recent sudden ban on fertilizer exports had a major impact on India's supply of di-ammonium phosphate during the Rabi season.

Similarly, several infrastructure projects were stalled due to the halt in the shipment of tunnel boring machines. On the other hand, the auto and electronics industries expressed deep concern over China's ban on rare magnetic minerals.

According to analysts, the withdrawal of troops from the border and the easing of economic sanctions in the wake of diplomatic talks have created a new level of trust between the two countries.