8 months ago
China Grants Rare Earth Licenses to Few Indian Firms
China has started giving special permits to a few Indian companies to import rare earth magnets, which are very important for making cars, electronics, and defense equipment.
These permits were stopped for a while but have now started again, though very slowly.
Many Indian companies are still waiting for these permits, and the Chinese government says they are processing them one by one.
The Indian companies have to promise that these materials won't be used for making weapons.
Even though there are still delays, things might be getting better because the two countries are getting along better now.
China has granted rare earth magnet export licenses to a few Indian companies, including dealers for M&M, Maruti Suzuki, Honda scooter suppliers, and Bosch.
Licensing resumed in October 2025 after a halt in April 2025, with around 4-5 cases cleared initially.
At least 50 applications from Indian companies are still pending with the Chinese Commerce Ministry.
Indian companies must provide end-user certificates to ensure the materials won't be used for weapons of mass destruction.
The Indian industry has complained about delays in obtaining export licenses despite meeting all conditions.
- Who
- Indian companies including M&M, Maruti Suzuki, Honda scooter suppliers, Bosch, Jay Ushin Ltd, De Diamond Electric India, Continental AG, and Hitachi Astemo
- What
- China has granted rare earth magnet export licenses to a few Indian companies
- Where
- China and India
- When
- Licensing resumed in October 2025 after a halt in April 2025
- Why
- India is dependent on China for rare earth magnets used in various industries, and China has imposed strict export restrictions
Key facts
- Licensed Companies
- M&M, Maruti Suzuki, Honda scooter suppliers, Bosch, Jay Ushin Ltd, De Diamond Electric India, Continental AG, Hitachi Astemo
- Total Pending Applications
- 50
- Licensing Resumption Date
- October 2025
- Licensing Halt Date
- April 2025
- Key Industries Affected
- Automobile, Electronics, Semiconductor, Defense
- End-User Certificate Requirement
- Certification that materials won't be used for weapons of mass destruction or their delivery systems
Quotes
An official tracking the matter
An official monitoring the rare earth magnet import process
“China has not been very prolific in clearing licence applications for rare earth magnet imports for Indian companies. After temporarily stopping issuance of licences in April this year, it resumed in October-end by clearing around 4-5 cases. Since then the pace has not picked up. New licences continue to be issued albeit sluggishly.”
thehindubusinessline.com
The source
An anonymous source familiar with the matter
“Indian Embassy officials have been told by Chinese officials that the delay is due to the pile up and clearances will happen on a case-to-case basis.”
thehindubusinessline.com
Sources
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