China rejects Sona Comstar's rare earth magnets imports

THE CHINESE GOVERNMENT has rejected Sona Precision Forgings' (Sona Comstar) application to import rare earth magnets (REMs), making it the first Indian company to face such a decision under China's tightened export control regime.

- NITIN KUMAR

The move, according to sources familiar with the matter, took place in late May and comes amid broader concerns across the domestic auto component sector regarding new export licensing rules introduced by Beijing in April. However, sources said that Sona Comstar had submitted two applications and only one of them has been turned down, while the other is still under consideration.

Sources added that Sona can reapply for the application which has been rejected. Further, the rejection of one of its applications should be seen in the context of it being the most pro-active on this front by being among the first to finish the documentation and submit its applications.