China Imposes Export Control on Tunnel Boring Machines in What Indian Expert Calls ‘Covert Trade War

Citing national security interests, China’s Ministry of Commerce said in an announcement on Oct. 19 that it was imposing export controls on tunnel-boring machines and related items destined for “sensitive countries” and regions with which China has disputes. An Indian expert described the move as a surprise and a “secret trade war” and called for a comprehensive response from New Delhi.

“China will impose export controls on full-face tunnel-boring machines, including earth-pressure-balance, slurry-balance and other shield machines, as well as open, single-shield and double-shield rock tunnel-boring machines,” the ministry said in a release on Monday, Oct. 20.

India and China share a long, disputed border along the Himalayan mountain range, which separates the Tibetan Plateau from the Indian subcontinent. Following the deadly 2020 Galwan Valley clash, in which soldiers from both countries were killed, India and China accelerated infrastructure development along the border, including the construction of roads, railways, tunnels and bridges.

This is where China’s export controls on heavy equipment and machinery become geopolitically sensitive. According to the official announcement, the controls cover machines designed for use at altitudes above 3,000 meters.

The controls also cover specified engines, motors, compressors, chassis, folding arms and related hydraulic and pumping technologies. Exports of these items to “sensitive countries and regions with which China has disputes” require an export license from the Ministry of Commerce, according to the announcement.

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The export control announcement cites China’s Export Control Law, Foreign Trade Law, Customs Law and Regulations on the Export Control of Dual-Use Items.

Expert: This is ‘China’s unannounced covert trade war with India’

Banuchandar Nagarajan, an Indian public policy adviser, told Vision Times that “the latest export ban or export restrictions on tunnel-boring machines are part of China’s unannounced, covert trade war with India,”

“They inflict a double whammy: on one side, they restrict access to critical minerals and components, making it difficult to manufacture machines and tools in India. On the other side, they also impose restrictions on finished products.”

In an August 2025 parliamentary response in the Lok Sabha, India’s Ministry of Commerce and Industry confirmed that China’s export controls on rare-earth magnets had caused supply-chain bottlenecks affecting Indian industries, including electric vehicle (EV) manufacturers, the Press Trust of India (PTI) reported. 

Nagarajan said such restrictions had occurred many times before, including restrictions involving carbide tools—industrial cutting, drilling and machining tools made primarily from cemented carbide, a high-performance composite material.

“There is a restriction on tungsten carbide exports to India, and at the same time, they keep dumping low-cost tools into India, thereby hurting our local manufacturers.

“Unfortunately, even the government has turned a blind eye to this when it comes to procurement, where government bids are based on L1 [lowest bidder] and not the total cost of ownership,” he said.

Nagarajan called for a “comprehensive” response from Prime Minister Narendra Modi’s administration and outlined four measures that should form its basis.

“First, the critical minerals partnership, on which the government is already taking steps. Second, making sure that we develop these advanced manufacturing capabilities so that we produce these machines as part of Atmanirbhar Bharat.”

Atmanirbhar Bharat, meaning “self-reliant India,” is an initiative launched by Modi in May 2020 to strengthen domestic manufacturing, reduce excessive dependence on imports and make the country more resilient to global supply-chain disruptions.

“Third, we make sure that we have anti-dumping import controls on Chinese goods. Fourth, government entities and PSUs don’t procure Chinese goods just because they are cheap based on L1 bids,” Nagarajan said.