China is tightening export controls on construction equipment, including tunnel boring machines—some of the most complex and large industrial devices in the world. These machines are used for building roads, railways, and subways under mountains. China holds a dominant position in the global market, and India is one of its major consumers.
Although construction sites may not seem like the most obvious bottleneck in the global economy, unlike artificial intelligence technologies, which Beijing has also proposed including in the list of restrictions, or rare earth elements used in smartphones and high-tech weaponry, China's control in this industry is strong but not absolute. The attempt to use this as leverage could encourage other countries to increase their own production.
Kyle Chan, a researcher at the Brookings Institution, noted that 'Beijing is increasingly viewing its position as a key global producer of construction equipment from a strategic perspective. This increases dependency risks and motivates other countries to try to reduce reliance on China.'
Nevertheless, this is difficult to achieve in the short term. While wars in Ukraine and Iran have highlighted the growing military importance of underground structures, the new restrictions are particularly significant for India as they come into effect later this month.
In addition to tunnel boring machines, the restrictions also cover other construction equipment, such as concrete spraying machines at great heights. Beijing cites the dual-use potential of such technologies in both military and civilian projects, stating that stricter rules will apply to 'sensitive countries and regions that have disputes with China.'
Indian leaders may view this wording as an allusion to them. The Himalayan border region between the two most populous countries in the world has long been a zone of tension, and tensions flared up again last month. India is building railway lines and roads in this area, aiming to reduce troop mobilization time, which will require a large number of tunnels.
