NEW DELHI – India and China on Tuesday sought to reset relations, with Beijing signalling readiness to address New Delhi’s critical needs for rare earths, fertilisers, and tunnel-boring machinery. The pledge came during the 24th round of border talks in New Delhi between Indian National Security Advisor Ajit Doval and Chinese Foreign Minister Wang Yi – their highest-level engagement since the deadly 2020 border clashes in Ladakh.

“There has been an upward trend. Borders have been quiet. There has been peace and tranquillity,” Mr Doval told Mr Wang as the talks began. “Our bilateral engagements have been more substantial.”

Mr Wang responded by stressing that the “stable and healthy development of China-India relations is in the fundamental interests of the two countries’ people,” according to a Chinese foreign ministry statement.

Beijing Moves on Rare Earths, Fertilisers

An Indian government source confirmed that Mr Wang assured External Affairs Minister Subrahmanyam Jaishankar earlier in the day that China would address three pressing concerns: fertiliser supplies, access to rare earths, and delivery of tunnelling equipment needed for India’s infrastructure push.

China, which dominates global rare earth refining and magnet production, had slowed shipments to India this year. Customs data show Chinese rare earth magnet exports to India fell 58 per cent from January to June 2025, even as exports to Europe and the US rebounded after Beijing eased licensing bottlenecks.

India, despite holding the world’s fifth-largest rare earth reserves (6.9 million tonnes), lacks the industrial base to refine ores or produce magnets domestically, leaving it reliant on imports from China. Officials did not clarify whether Beijing would offer faster export licenses or exemptions for India, as it has pledged for Western partners.

Trade and Security Calculations

The renewed dialogue comes ahead of Prime Minister Narendra Modi’s planned visit to China for the Shanghai Cooperation Organisation summit later this month – a signal both sides are keen to balance economic cooperation with border management.

Analysts note that the discussions could ease India’s supply chain vulnerabilities but warn of continued caution: “China has used export approvals as a policy lever in the past. New Delhi will look for tangible action, not just promises,” said a senior trade economist in New Delhi.

Challenges for both countries

While no breakthroughs were announced, the optics of dialogue mark a significant thaw since 2020. Both governments highlighted a “new environment” of peace along the frontier, creating space for deeper cooperation. For India, progress on rare earths and fertilisers could support its clean energy and infrastructure goals, even as broader trust-building on the border remains unfinished. (zai)