China's Ministry of Commerce announced on 19 October that exports of tunnel boring machines, walking excavators and plateau-type wet shotcrete machines will need licences from 18 November1. Exporters must apply to the ministry under the Export Control Law and the rules on dual-use items, the announcement said1. Dual-use means equipment that can serve both civilian and military purposes.
The controls land on a concentrated market. Beijing state media put China's global share of the industry at around 70%2. China Railway Engineering Equipment Group, the largest producer, says its machines are used in 36 countries including Denmark and France2.
Components, not just complete machines
The restrictions cover components as well as finished machines, according to a report in The Economic Times on 2 November2. That matters because boring machines wear out. Ajay Srivastava, founder of the Global Trade Research Initiative, said fleets in service need a steady flow of parts, so the curbs hit existing projects as well as new orders2. "When there is heavy wear and tear in these machines we require regular supply of parts," he said2.
For dredging equipment, the 19 October announcement set technical thresholds. Slurry pumps with an inlet diameter of at least 0.55 metres are covered if their maximum speed is no more than 400 revolutions per minute1. So are pump casings with an inner diameter of at least 1.3 metres, impellers of at least 1.3 metres, and cutterheads with an outer cutter ring of at least 2.1 metres1.
Customs is the second control point. Exporters must identify controlled items and state their dual-use export control codes on customs declarations1. If customs doubts the accuracy of a declaration, it can hold the shipment while it verifies the details1. Goods are not released during that check1.
The destination question
Beijing said exports to "sensitive countries and regions with disputes with China" will face stricter treatment, according to the 2 November report2. The report does not say India is named in the official text. It says India's leaders have reasons to read the language that way2.
One analyst quoted in the report said the inclusion of high-altitude machinery could suggest attention to "strategically sensitive terrain"2. That was Sun Chenghao, a fellow at Tsinghua University's Center for International Security and Strategy2. Kyle Chan, a fellow at the Brookings Institution, said the controls raise the risks of dependency and push other countries to de-risk from China2.
The India link is concrete. Railway Minister Ashwini Vaishnaw said the Karnaprayag terminal of the 125-km Rishikesh to Karnaprayag line is around 123 km from the India-China border4. About 104 km of the route runs through tunnels4.
A market already squeezed
Reuters figures cited by The Economic Times put Indian imports of tunnelling machinery from China at $18 million in 2022-235. They fell to $3 million in 2023-24 and $500,000 in 2024-25, then edged up to $800,000 in 2025-265.
In 2024, Chinese clearances held up Herrenknecht machines built at its Chinese plants for Indian projects including the Ahmedabad-Mumbai bullet train and the Delhi metro2. Herrenknecht said it is studying the latest restrictions2. The brand's home country was not enough: Herrenknecht is German, but machines built in China still needed Chinese clearance2.
Indian officials expect the damage to be selective. One official said high-duty engines, high-mass cranes and tunnel boring equipment could affect critical projects, including the bullet train6. Shalabh Chaturvedi of CNH Industrial said general construction equipment would see little impact because domestic supply is sufficient, though specialised imports may be affected6.
The 18 November date also covers separate Chinese controls on unmanned aerial vehicles and related technologies7. Those were announced by MOFCOM, the General Administration of Customs and the Central Military Commission Equipment Development Department7.
The substitute is not ready
Road transport minister Nitin Gadkari said on 27 October that India plans to invest more than Rs 7 lakh crore to Rs 8 lakh crore in tunnels over five years3. The programme covers metro and hydro projects. He urged industry to develop tunnel machinery at home3. Heavy Industries Minister H D Kumaraswamy said equipment and components valued at around ₹45,000 crore have high import dependence6.
Railway Minister Vaishnaw said India now makes 8-metre and 15-metre diameter boring machines4. He said machines above 16 metres are planned, and pointed to a TBM plant in Tamil Nadu4. Larsen & Toubro is testing its own. President R. Shankar Raman said the company is building a prototype and might supply its own machinery to others if the experiment succeeds2. He also warned on price, saying India would be at a disadvantage while buyers keep comparing with Chinese prices and finding ways to import from China2.