New Delhi, Oct. 27 -- India's plan to strengthen domestic production of rare earth minerals and magnets-crucial for electric vehicles, renewable energy, and high-tech manufacturing-faces a potential setback following China's decision to tighten export rules on rare earth processing equipment.

According to The Economic Times, Beijing's Ministry of Commerce recently expanded export restrictions to include machinery and materials used in processing rare earth elements, such as centrifugal extraction and impurity-removal equipment.

Exporters will now need special licences and must declare if their items could be used for both civilian and military purposes. China said the move is meant to "safeguard national security," echoing earlier curbs...