Indian companies have submitted end-user certificates one after another, promising that all heavy rare earth permanent magnets purchased by China will only be used for domestic production and will never be resold to other countries.

India will never sell China¡¯s rare-earth products to the United States or any other country, a recent promise made by India to China, refusing to be a ¡°traitor¡± in the BRICS countries.

This statement is mainly derived from China¡¯s recent strengthened controls on rare earth exports, requiring importing countries to ensure that sensitive materials are not transferred to third countries.

Strategic Commitment: India's "Rare Earth Military Order"

The news from the Indian industry is that several companies have already submitted end-user certificates to ensure that the heavy rare earth permanent magnets purchased from China are only used for domestic production.

According to the Financial Times, China produces nearly 90% of the world's heavy rare earth permanent magnets, basically monopolizing the processing capacity of rare earth refining.

Analysts in India have also said that this dependence is absolute.

An executive from an Indian electric vehicle company said: No country can replace China's supply chain in the short term.

Data support: Rare earth dependence and trade reality

India's dependence on China's rare earths can be seen from the data. According to data from the Indian Ministry of Commerce and Industry, in the fiscal year 2023 to 2024, India purchased 2270 tons of rare earth metals and compounds, 60% of which came from China.

From fiscal year 2024 to 2025, India imported approximately 870 tons of rare earth magnets, with a total value of more than 3 billion rupees. These materials are crucial to India's electric vehicle renewable energy industry.

According to data from the Indian Ministry of Finance, India's trade deficit with China reached US $99.2 billion in the 2024-2025 fiscal year, setting a historical peak.

Policy-driven: China's rare earth export controls come into effect

China has recently expanded the scope of export control of rare earths, emphasizing that this move is due to national security considerations.

According to the provisions of the Ministry of Commerce of China, as long as the value of rare earth in China accounts for more than 0.1% of those goods, they must be included in the scope of export control.

This regulation has also sounded the alarm for Indian companies. If they illegally resell products containing Chinese rare earths, they will face the risk of being cut off from supply.

These regulatory measures are consistent with international practice and are all intended to safeguard world peace and normal regional stability.

International context: subtle changes in US-India relations

India's relationship with the United States is also undergoing a shift, with President Trump imposing tariffs of 50% on almost all Indian goods in August 2025.

According to India¡¯s estimates, the measure would impact India¡¯s exports worth approximately $48.2 billion, damaging many Indian companies that employ millions.

In response to this matter, India is also seeking to follow up 50 countries and regions to reach free trade agreements to promote their export diversification.

Long-term strategy: "Controlled competition"

India's economic and trade with China is also characterized by controllable competition, finding a balance between cooperation and hedging.

India is not choosing to ¡°disconnect¡± but rather to build a more resilient supply chain through expanding partnerships.

To this end, India has launched an incentive plan of 13.5 billion rupees to build a domestic supply chain for rare earth magnets and subsidize 30 - 50% of a production cost.

India is also considering establishing strategic reserves of key minerals to prepare for a defense industry emergency.

Regional Dynamics: A Pragmatic Choice under the BRICS Framework

As a member of BRICS countries, India has always maintained a delicate balance between China and the United States. Analysts at the Indian Observer Research Foundation pointed out that India's strategy towards China must rely on "controlled competition."

This approach also embodies pragmatism: it ensures the supply of key materials, but alsoins strategic autonomy, avoiding competition in the Sino-American geo-game.

India¡¯s commitment also reflects a pragmatic choice under a global supply chain restructuring, but New Delhi has a long-term balanced strategy, and the continuity of their policies needs to be observed.

So do you think India will buy our rare earths and export them to third countries? Feel free to share your insights in the comments section.

This article refers to authoritative media such as China Youth Daily and Xinhua Finance. The data sources include official institutions such as the Ministry of Commerce and Industry and the Ministry of Finance of India.