China's new construction equipment export controls pose trade risk to India
Beijing's restrictions on tunnel-boring machines and high-altitude machinery could impact strategic infrastructure projects in the Himalayan border region.
China is introducing new export controls on construction equipment, including tunnel-boring machines and high-altitude concrete spraying machinery, according to a report by Moneycontrol. The restrictions, which take effect later this month, target equipment that Beijing claims has dual-use potential for both civilian and military projects.
The move could impact India, which is building railways and roads in the Himalayan border area to reduce troop mobilisation times. Beijing stated that stricter rules will apply to sensitive countries and regions with disputes with China. Sun Chenghao, a fellow at Tsinghua University’s Center for International Security and Strategy, said China's central concern is whether its engineering capabilities could strengthen another country's military infrastructure.
The controls also apply to machine components. Ajay Srivastava, founder of the Global Trade Research Initiative, said that because machines require a regular supply of parts due to wear and tear, the curbs will impact both new procurement and existing machinery. In 2024, China delayed efforts by Germany's Herrenknecht AG to sell boring machines to India for projects such as the Delhi metro.
India's Road Transport and Highways Minister Nitin Gadkari has stated the country aims to invest up to $9.6 billion on tunnelling over the next five years. R. Shankar Raman, president of Larsen & Toubro Ltd., said his company is building a prototype tunnel-borer, though he noted India would face a disadvantage if compared to Chinese prices.