Machinery and equipment: Chokepoints and risks
Machine tools, construction and mining equipment, tractors, pumps and process plant
Chokepoints and risks
- China produced about EUR 1.13 trillion of machinery in 2024, more than the US, Germany and Japan combined, putting price pressure on everyone else1.
- China made 94% of sintered rare-earth magnets in 2024 and has required export licences since April 2025, with wider controls announced in October 2025, threatening servo motors and drives2.
- High-end CNC controllers, precision bearings and hydraulics come from a few non-Indian firms, which caps local value addition.
- Demand is highly cyclical, tracking construction, mining and farm incomes, and credit conditions.
- Export controls on advanced machine tools and dual-use equipment can block both sales and supplies.