China is unlikely to ease restrictions on export of rare earth minerals and other auto parts till the Indian government reciprocates by dialing down curbs on the Chinese industry under Press Note 3. This stance was made clear to electric vehicle (EV) manufacturers at a meeting in the Chinese embassy during the Diwali period.

According to sources in the EV industry, the Chinese embassy officials were clear about reciprocity from India on allowing FDI from China if they expect easing of export controls on rare earth elements.

“Our industry delegation went to the Chinese Embassy primarily to ask for relaxation of import of magnets. The Chinese trade officials who met us first said ‘you have already solved the issue with replacing magnets and using ferrite motor. So why are you asking for re

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