In a series of calculated moves, China has stepped up its use of economic leverage to constrain India’s industrial ambitions. Over the past year, Beijing has systematically restricted exports of critical raw materials and engineering support, sending a clear warning to New Delhi as geopolitical tensions and trade realignments intensify. The latest is Chinese battery giant CATL reportedly directing Foxconn to withdraw all Chinese engineers from its manufacturing unit near Chennai.Earlier, China had imposed curbs on exports of critical minerals such as gallium and germanium—essential for India’s electronics, EV, and defense industries. In late 2024, the restrictions were extended to graphite, dealing a direct blow to India’s clean energy and battery manufacturing sectors.
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