Washington : The United States has urged India to play a pivotal role in a global effort to counter China’s growing dominance over rare earth minerals, following Beijing’s latest decision to tighten export controls on materials vital to the production of electronics, defense systems, and electric vehicles.
China’s new restrictions, set to take full effect from December 1, will impose strict licensing rules on the export of rare earth materials and technology, giving Beijing greater control over who receives these supplies. The move has raised concerns in Washington and other capitals that China may use its position as the world’s largest processor of these minerals as a tool of geopolitical pressure.
US Treasury Secretary Scott Bessent described China’s action as “provocative,” warning that it could destabilize global supply chains. He called for greater cooperation among democratic nations and emphasized India’s importance as a strategic partner in building an alternative global network for critical minerals.
India, meanwhile, has taken several steps to reduce its dependence on China. The government recently approved a ₹7,300 crore incentive scheme to boost domestic rare earth and magnet manufacturing. New initiatives also include plans to create a National Critical Mineral Stockpile, designed to maintain at least two months of reserves and safeguard industries from potential shortages.
Officials in New Delhi say these measures are aimed at strengthening self-reliance and ensuring supply chain resilience. India is also preparing to accelerate mineral block auctions and expand exploration projects to secure its own resources.
While major Indian manufacturers, including Tata Motors, have said they have not yet faced significant disruptions, many industries remain cautious. Experts warn that China’s curbs could cause global price fluctuations and production delays in sectors such as electronics and defense.
The United States and European Union are also exploring joint strategies to counter China’s influence, including tariff measures and investments in rare earth processing outside Chinese territory. Analysts view the latest developments as part of an intensifying competition over control of critical resources that underpin the world’s transition to advanced technologies.
As nations race to diversify supply chains, India’s growing role in the rare earth sector could position it as a key player in shaping a more balanced and secure global market.