Explanation: China’s delay that prompted Piyush Goyal to say: “We must stop buying German equipment”

Herrenknecht, a German mechanized tunnel boring company, has reportedly declared “extraordinary circumstances” to Chinese customs by delaying shipments of tunnel boring machines intended for Indian projects.

This issue, the company said, has seriously impacted its ability to meet its commitments to Indian customers.

“For several months now, we have been observing extraordinary circumstances in the customs clearance processes of cars that will be delivered from China to India. This prevents us from meeting our delivery obligations as expected and, in some cases, completely,” a Herrenknecht spokesperson told the Indian Express.

The situation came to public attention when Union Commerce Minister Piyush Goyal addressed it directly with German Vice-Chancellor Federal Economic Affairs Minister Robert Habeck.

The exchange took place during a ride on the Delhi Metro as part of Habeck’s visit to India to attend the 7th Intergovernmental Consultations between India and Germany. Goyal expressed his disappointment, noting that TBMs manufactured by Herrenknecht in China are being blocked from export to India.

“We must stop buying German equipment now,” Goyal said, highlighting the urgency of the situation.

Habaek, not familiar with the specifics at first, asked, “Are they made in China?” Goyal reiterated this, highlighting the impact on critical infrastructure projects. In response, Habaek stood up from his seat and admitted, “I think I should listen to you.”

With operations in over 60 locations worldwide, Herrenknecht remains a key player in Indian tunneling projects. Through its subsidiary in Chennai, the company supplied TBMs to metro networks in Delhi, Mumbai, Chennai and other major cities. The company declined to specify the number of TBMs affected or the projects affected, citing confidentiality agreements.

In addition, Herrenknecht noted that its central production facility in Schwanau, Germany, remains critical for the production of key components, even as large steel structures are manufactured and assembled at its facilities in China and India.

“This allows our customers to fully test the functionality of their machines in one place and rely on consistently high quality standards,” the company explained.

A video of Goyal and Habaek’s exchange, which has since gone viral, highlights the strain these delays are putting on India’s infrastructure ambitions. The current issue highlights the challenges facing international manufacturing and supply chain logistics, especially in sectors critical to urban development and civil infrastructure.