Key imports take Dubai route to skip China block

Move side-steps curbs that threatened to slow India's green energy, infra goals

- Dhirendra Kumar & Utpal Bhaskar

STEP AHEAD

• SEA CHANGE IN 2023, China set controls on export of minerals to India, US

• BUT China continues to supply minerals to nations of its interest

• EXPORT curbs point to need for greater local manufacturing

Made in China, imported from Dubai. That's the new mantra for Indian importers after China brought in export restrictions on machinery and minerals critical for industries like semiconductors and for infrastructure projects such as high-speed rail and metro rail, among others.

These products, of both Chinese and foreign manufacture, are reaching India's shores through Dubai's Jebel Ali port, three people aware of the development said.

"While there are problems with China imposing these overt and covert restrictions, our importers have found a fix. They are now rerouting shipments through foreign countries such as Dubai," a top government official said on condition of anonymity.

This is how it works. Traders registered in Dubai import or lease capital goods from China, which are then either sold to India or leased to Indian companies. This arrangement helps India bypass China's export restrictions and maintain its supply chain for critical machinery and equipment.