China’s TBM Export Curbs: Impact on India’s Infrastructure

China’s TBM Export Curbs Latest News

• China has introduced fresh global export restrictions on tunnel boring machines (TBMs) — critical equipment for metro rail and highway construction — adding to earlier curbs on rare earth magnets that have already hurt Indian automobile manufacturers. 
• These 3,000-tonne machines are vital for several Indian infrastructure projects, most notably the 508-km Mumbai-Ahmedabad High-Speed Rail (bullet train) Corridor, which includes a 7-km undersea tunnel. 
• The restrictions, announced by China’s Commerce and Industry Ministry, will take effect from November 18, 2026.

Why TBMs Matter

• TBMs ensure safer excavation compared to conventional blasting methods — crucial for India’s bullet train project, where the tunnel passes through densely populated areas.
• Widely used across Europe, Canada, the US, and Australia, TBMs are essential for modern underground transit infrastructure.
• China’s new rule requires export operators to apply for a licence under provisions of its export control law governing dual-use items.

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India’s Ongoing TBM Troubles

• India has faced TBM import delays since 2024, though shipments resumed in March 2026 as bilateral tensions eased somewhat.
• In a widely-noted 2024 incident, India raised the issue with Germany’s then Vice-Chancellor during a Delhi Metro ride.
• It flagged that machines made in China by German TBM leader Herrenknecht for delivery to India were being blocked.

Impact Depends on How China Uses Its Leverage

• The new licensing mechanism gives China greater bargaining power in trade negotiations — but the actual impact on India depends on how selectively it is applied.
• Union Commerce Minister noted that India is working to develop the relationship with China once again, though “the last word has not yet been scripted.
• Meanwhile, EAM S. Jaishankar and FM Nirmala Sitharaman have flagged concerns over the “one-sided” and “tilted” India-China trade balance.

The Trade Deficit Backdrop

• India’s trade deficit with China in the first half of 2026-27 stood at $69 billion — 27% higher than the same period last year.
• India has simultaneously: 
  • Opened doors to Chinese investment in select strategic sectors like power.
  • Ramped up anti-dumping measures against Chinese goods.
• As per a report, India opened 18 anti-dumping and anti-subsidy investigations in the July–September quarter — more than any other country, with China as the single largest target.

The Bigger Picture: China’s Global Trade Strategy

• China’s restrictions arrive amid high-stakes negotiations with both the US (currently in a two-month trade truce) and the EU (engaged in talks after EU curbs on Chinese EVs, EV batteries, and steel-protection measures).
• China’s global trade surplus hit $1.2 trillion in 2025, expected to exceed $1 trillion again in 2026.
• A Rhodium Group report (September 2026) found that China’s rising export share comes at others’ expense: 
  • By 2030, the US is projected to lose 1.2 percentage points of global trade share.
  • Indonesia (-0.8pp), Canada (-0.5pp), Germany (-0.4pp), Netherlands (-0.4pp).
  • Rest of the world combined: -4.6pp — roughly matching China’s estimated +8pp gain.

Conclusion

• China’s TBM export curbs, following earlier restrictions on rare earth magnets, reveal a recurring pattern — Beijing’s willingness to leverage its dominance over critical technologies and equipment as a tool in broader trade diplomacy. 
• For India, this exposes a strategic vulnerability: dependence on Chinese-manufactured or Chinese-routed machinery for flagship infrastructure projects like the bullet train corridor. 
• As India balances the dual imperatives of engaging economically with China while protecting its domestic industry and trade interests through anti-dumping action, episodes like this underscore the urgent need for diversifying supply chains and building indigenous capacity in critical construction technology.

Source: IE | TH