China's Commerce Ministry said exporters of tunnel boring machines would now be required to obtain licences under the country's export control laws and regulations governing dual-use items.
The announcement comes amid India's efforts to build domestic manufacturing capacity for specialised infrastructure equipment and reduce its dependence on overseas suppliers, including China.
Tunnel boring machines are used to excavate underground passages for metro rail networks, road tunnels and other infrastructure projects.
India relies heavily on imported equipment, making such projects vulnerable to disruptions in international supply chains.
The Chinese ministry also announced adjustments to export control measures covering drone-related items and dredgers as part of updates to its dual-use items export list.
The move also comes despite ongoing efforts by New Delhi and Beijing to normalise bilateral relations following years of tensions, particularly after the 2020 Galwan Valley clashes.
China had earlier blocked German machines bound for India
The latest restrictions come a year after a German tunnel boring machine manufacturer faced difficulties exporting equipment from its factories in China to India.
In September 2025, Germany's Ambassador to India, Philipp Ackermann, revealed that Chinese customs had blocked at least three tunnel boring machines manufactured by German company Herrenknecht and destined for Indian infrastructure projects.
Speaking to ThePrint at the time, Ackermann suggested that the delays were for political reasons. "The tunnel boring machines is an interesting case: So it is clear for political reasons that the Chinese would not really let them out. Now they are out...They are coming in. I think one came a month ago...The last one is coming now."
The machines had been manufactured at Herrenknecht's facilities in China for export to India but became caught up in restrictions amid tensions between New Delhi and Beijing after the 2020 Galwan clashes.
Following the export disruptions, Herrenknecht decided to establish production facilities in India to reduce its dependence on Chinese manufacturing operations.
Ackermann said the company could not continue operating under conditions where Chinese customs authorities were preventing its machines from reaching customers.
"Of course the company says that it cannot do business when Chinese customs are not allowing this. They are now setting up shop in India, they are trying to produce here. It is a good example on how to diversify, do not put your eggs in one basket only," he was quoted as saying.