Fighter jets, missiles, iPhones, EVs… China has been kind to US… Should India be worried?

In another sign of easing tensions over the issue, China has granted temporary export licences to rare earth suppliers to the top three US automobile companies.

Jun 7, 2025 - 16:30
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Fighter jets, missiles, iPhones, EVs… China has been kind to US… Should India be worried?

US President Donald Trump has claimed that Chinese language President Xi Jinping has agreed to send rare earths and magnets. This transfer can prick back tensions between the arena’s two largest economies. Amid the stress over tariffs, China imposed export administration on such minerals on April 4. Magnets fabricated from rare earth parts are mandatory and are frail in iPhones, electric vehicles, fighter aircraft like F-35 and missile programs. China has total administration over their supply and has stopped the provision of rare earth magnets to the US as properly as India.

When requested Trump whether Chinese language President Xi Jinping had agreed to export rare earths? Trump spoke back, “Yes, they score agreed.” Alternatively, the Chinese language Embassy in Washington did indirectly statement on this. Trump’s assertion comes a day after a rare conversation with Xi Jinping. In one other label of easing tensions over the arena, China has granted temporary export licences to rare earth suppliers to the quit three US automobile companies. US officials will meet Chinese language officials in London on Monday for extra talks.

Political stress

“We score now made great development on the address China,” Trump acknowledged. The 2 countries reached an settlement in Geneva, Switzerland on May 12. Under this, many of the heavy tariffs imposed on each diversified since Trump took office in January had been agreed to be rolled aid for 90 days. Monetary markets, alarmed about alternate disruptions, had been excited by the news. However China determined to droop exports of several serious minerals and magnets in April. This disrupted the provision of very crucial goods to automobile companies, computer chip makers and navy contractors around the arena.

Trump accused China of violating the Geneva settlement. He ordered a ban on chip-create draw and diversified shipments to China. Beijing rejected the train and threatened retaliation. Rare earths and diversified serious minerals are a weapon for China. If companies score trouble making mineral-based products and financial growth slows, Trump may face home political stress.

US has got relief nonetheless Indian auto companies are facing a sort of trouble. 9 Indian companies making auto parts score got the application for import handed from the Chinese language embassy. Despite this, the provision has no longer started. China’s Commerce Ministry has no longer yet given reputation of this. These magnets are mandatory for electric vehicles. Also they're frail in parts like instruments draw and drive train.

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