China to implement export controls on construction equipment later this month
New restrictions on tunnel-boring machines and high-altitude machinery could impact Indian infrastructure projects, according to Moneycontrol.
China is set to introduce new export controls on construction equipment, including tunnel-boring machines and high-altitude concrete spraying machinery, later this month. Beijing stated the measures target equipment with potential dual use in both civilian and military projects, noting that sensitive regions with disputes involving China will face stricter rules.
The restrictions could affect India, which is currently building roads and railways in the Himalayan border region to reduce troop mobilisation times. According to Moneycontrol, these projects require significant tunnel construction. Kyle Chan, a fellow at the Brookings Institution, said Beijing views its role as a major producer of such equipment in strategic terms, which increases dependency risks.
The new rules also apply to machine components. Ajay Srivastava, founder of the Global Trade Research Initiative, said that because these machines require regular 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. The government is reportedly considering a $1.2 billion incentive plan for construction equipment manufacturers. R.
Shankar Raman, president of Larsen & Toubro Ltd., said his company is building a prototype tunnel-borer to potentially source its own machinery.
