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China’s heavy machines are a risk to India

By · Published by Everything Blog

In short

The new restrictions apply directly to tunnel-boring machines, high-altitude concrete sprayers, and critical replacement parts needed to maintain India's operational fleets. Because Chinese manufacturers control approximately 70% of the worldwide tunneling machinery market, alternative suppliers remain limited in the short term. The export controls follow past regulatory delays, including a 2024 episode where China hindered German firm Herrenknecht AG from delivering China-built equipment for Indian transit networks. However, analysts believe the trade squeeze could drive global manufacturers to establish operations in alternative hubs like India.

Key points

  • Tightening trade controls on dual-use construction gear directly threaten India's militar…: Tightening trade controls on dual-use construction gear directly threaten India's military transit and border infrastructure projects.
  • Chinese dominance over tunneling technology leaves international buyers with few immediat…: Chinese dominance over tunneling technology leaves international buyers with few immediate alternative suppliers for machinery and routine maintenance parts.
  • Supply restrictions may ultimately push manufacturers from the United States, Japan, and…: Supply restrictions may ultimately push manufacturers from the United States, Japan, and Europe to de-risk by expanding production capacity outside of China.

Sources checked by our analysis pipeline: 1

Beijing’s newest export controls target construction equipment — including tunnel-boring machines, some of the world’s largest and most complex industrial devices. They’re used to build subways or drill roads and railways through mountains. China dominates the global market and India is among its main customers.

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Building sites might not be an obvious chokepoint in the global economy — unlike the AI technologies that Beijing has also proposed adding to its restricted list, or the rare earths used in smartphones and high-tech weapons. What’s more, China’s grip on this industry is strong but not absolute, and seeking to turn it into leverage could spur others to catch up.

“Beijing increasingly sees its position as a key global producer of construction equipment in strategic terms,” said Kyle Chan, a fellow at the Brookings Institution. “It raises the risks of dependency, and incentivizes other countries to try to de-risk from China.”

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