India has developed a unique strategy and made plans to locate supply chain alternatives in reaction to China's bullying

Union Commerce Minister Piyush Goyal has stated that China's decision to ban the export of rare earth elements presents an opportunity for the entire world to recover. He mentioned that India is actively working on establishing a supply chain for rare earth elements, aiming to position itself as a reliable partner for international businesses to decrease reliance on China. 

Piyush Goyal is currently in Bern, Switzerland, on an official visit, where he engaged with Swiss government officials and business leaders. He acknowledged that the ban on rare minerals by China will pose certain challenges to India's automotive and goods sectors. Additionally, he outlined a comprehensive strategy to address this crisis. The government is communicating with the Chinese government through various diplomatic channels while simultaneously making efforts to create alternative arrangements for the supply chain.

Goyal emphasized that 'this situation is an opportunity for all those who have become overly dependent on a particular geographical area to recover. This is an opportunity for the whole world to be alert that you need a reliable partner for the supply chain.' It is important to note that the auto industry has experienced a significant setback due to China's ban, as rare earth element magnets are essential in the production of many devices within the automobile industry, which must be imported from China. China dominates the processing of rare earth elements, producing 90 percent of the world's magnets. These magnets are utilized not only in the automobile sector but also in household goods and clean energy systems. On April 4, China prohibited the export of rare earth element magnets to foreign countries without government approval.