New Delhi, Oct 30 : Ministry of External Affairs spokesperson Randhir Jaiswal said on Thursday that some Indian companies have received licenses for importing rare earth magnets from China.

At least three Indian companies'Continental India, Hitachi, and Jay Ushin'have received initial government approval to import the magnets. These firms supply components for India's automotive and electronics industries.

This is the first set of clearances since Beijing imposed tight controls on the export of these magnets earlier in April. The move is intended to alleviate supply issues that have impacted key industries in India.

Jaiswal also said, 'We have to look at how the US and China talks will play into our domain."

The import licenses have specific conditions attached. The imported magnets cannot be re-exported to the United States and cannot be used for defence-related purposes.

The MEA had previously confirmed in June 2025 that it was in discussions with China to secure the supply of rare earth materials and bring predictability to the trade supply chain.

The Indian government and industry bodies have been working to find a solution to the supply bottlenecks. The automotive sector, especially manufacturers of electric vehicles (EVs), was particularly affected by the export restrictions. This initial grant of licenses is expected to ease some of the pressure.

Meanwhile, US President Donald Trump on Thursday announced that he and Chinese President Xi Jinping have agreed on a one-year deal for the supply of crucial rare earth materials.

The announcement came after the two leaders met at Busan in South Korea, on the sidelines of the 32nd APEC Economic Leaders' Meeting -- their first in-person meeting in six years.

Trump said the agreement will be renewed annually and represents significant progress in the countries' strained trade relationship.

'All the rare earths have been settled, and that's for the world,' Trump told reporters aboard Air Force One after the meeting.

He added that he had also agreed to reduce fentanyl-related tariffs on China from 20 per cent to 10 per cent, describing the meeting with Xi as 'a 12 out of 10.'

Trump said, 'A lot of things we brought to finalisation,' and praised the Chinese President as 'a tremendous leader of a very powerful country.'

/IANS