Archive · 19 Dec 2025
China Eases Rare Earth Exports for Civilian Use
China has recently allowed the export of rare-earth metals for civilian use, which is good news for countries like India that rely on these materials for making cars, electronics, and renewable energy equipment.
However, China is still very careful about not letting these materials be used for defense purposes.
India has been worried about shortages and has been talking to China to fix these issues.
At the same time, India is trying to make more of these materials at home and work with other countries like Australia and the US to get them from different places.
This is important because China controls a lot of the rare-earth mining and processing in the world.
Also, India's trade with China is not balanced, with India importing much more than it exports, leading to a big trade deficit.
China has approved exports of rare-earth metals for civilian use, easing immediate supply concerns for Indian industries.
China controls around 70% of global rare-earth mining and nearly 90% of processing, making its export policies central to global supply chains.
India has been raising concerns over rare-earth shortages in bilateral forums and is pushing for domestic processing and diversification of supply chains.
India's trade with China is highly imbalanced, with a record trade deficit expected in 2025, driven by rising imports and weak exports.
India's exports of electronics components to China, such as PCBs and mobile phone components, have seen significant growth, reflecting efforts to boost local manufacturing.
- Who
- China, India, US, Global Trade Research Initiative (GTRI)
- What
- China's approval of rare-earth exports for civilian use and India's trade dynamics with China
- When
- Recent developments, with specific data points from October and November 2023, and projections for 2025
- Where
- Global, with a focus on China and India
- Why
- To address supply chain dependencies and trade imbalances, particularly in critical minerals and electronics
China's Stance
India's Stance
Export Controls
China's Stance
China maintains strict export controls on rare earths, especially for defense applications, citing non-proliferation norms.
India's Stance
India seeks early resolution of export control issues and diversification of supply chains to reduce dependence on China.
Supply Chain Dependence
China's Stance
China controls around 70% of global rare-earth mining and nearly 90% of processing, making its export policies central to global supply chains.
India's Stance
India aims to invest in domestic rare-earth processing and deepen partnerships with alternative suppliers like Australia and the US.
- China's Global Share of Rare-Earth Mining
- 70%
- China's Global Share of Rare-Earth Processing
- 90%
- India's Trade Deficit with China in 2025
- $106 billion (India's data) or $115.2 billion (China's data)
- India's Exports to China in 2025
- $17.5 billion (India's data) or $19.1 billion (China's data)
- India's Imports from China in 2025
- $123.5 billion (India's data) or $134.3 billion (China's data)
- Growth in PCB Exports from India to China (October 2023)
- 8,577% year-on-year
- Growth in Mobile Phone Component Exports from India to China (April-October 2023)
- 82%
Sources
India must pick up pace in race for rare earths
India’s Push For Battery Recycling Promises Jobs, Clean Energy And Mineral Security
Electronics emerges as a dark horse in India-China trade deficit to touch record in 2025
China’s rare-earth policy shift: What civilian-use approvals mean for India - World News
