China to restrict exports of tunnel-boring machines
The new export controls on specialised construction equipment could impact India's infrastructure projects and increase dependency concerns, according to Bloomberg.
China is implementing new export controls on construction equipment, including tunnel-boring machines and high-altitude concrete spraying tools, according to a Bloomberg report cited by the Times of India. Beijing stated that these restrictions apply to sensitive countries and regions involved in disputes with China, citing potential military and civilian applications.
The measures, which include components for the machinery, are expected to take effect later this month. This could impact both the purchase of new equipment and the maintenance of existing machines. China currently accounts for approximately 70 per cent of the global tunnel-boring machine market.
The restrictions may affect India, which is a major customer for this equipment and is currently expanding road and railway infrastructure along the Himalayan border. In 2024, China delayed efforts by German manufacturer Herrenknecht AG to sell tunnel-boring machines to India for the Delhi Metro and the Ahmedabad-Mumbai bullet train project.
Ajay Srivastava, founder of the Global Trade Research Initiative, said that while India could move equipment between priority projects, restrictions on components might create difficulties for maintaining machinery due to regular wear and tear. A spokesperson for Herrenknecht said the company is studying the latest restrictions.
To reduce reliance on imports, the Indian government is considering a $1.2-billion incentive scheme for manufacturers of equipment like tunnel-boring machines and elevators. The programme, announced in the 2026-27 Union Budget, aims to attract $1.8 billion in investment over seven years through local value-addition targets.
