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China Claims TBM Export Curbs Won't Harm Ties With India

Reported by Imran Qureshi (Staff Writer) · Indian Express - Business ·

Source: Indian Express
Important
China Claims TBM Export Curbs Won't Harm Ties With IndiaPhoto: Wikimedia Commons

China's state media has stated that export curbs on tunnel boring machines should not harm bilateral relations, while India pushes forward with domestic manufacturing plans. The Global Times editorial noted that applications to export the equipment for civilian projects would be approved, following comments from Commerce and Industry Minister Piyush Goyal that India would build its own machines if restricted. China's Ministry of Commerce announced that exporters must apply for licences under dual-use regulations starting November 18.

Background

China has previously imposed licensing mechanisms on rare earth magnets, causing disruptions for the Indian auto industry, with additional restrictions planned for solar capital goods and technology. In response, the Union Cabinet approved a Rs 7,280-crore scheme for sintered rare earth permanent magnets, and the government is preparing a production-linked incentive scheme for polysilicon.

Context

Tunnel boring machines are critical heavy equipment used to dig underground tunnels for major infrastructure projects like the Mumbai-Ahmedabad bullet train corridor. Trade tensions between India and China often intersect with broader supply chain dependencies and ongoing border disputes along the Line of Actual Control.

ExplainerWhy this matters

What Happened

China's Ministry of Commerce introduced new licensing requirements for exporting dual-use items, including tunnel boring machines, effective November 18. This follows previous export controls on critical materials like rare earth elements and minerals.

Why It Matters

These export controls directly impact India's massive infrastructure push, especially underground transit projects like the Mumbai-Ahmedabad bullet train. By restricting key capital goods, supply chains for major developing economies face sudden bottlenecks and vulnerability to geopolitical friction.

What Happens Next

India is accelerating domestic production through specialized schemes like production-linked incentives for polysilicon and funding for rare earth permanent magnets. Bilateral discussions and trade defense investigations are expected to continue as both nations navigate manufacturing self-reliance.

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