Winning Bizness Desk
Mumbai. China has reportedly stopped delivering crucial machines and parts used in India’s electronics and automobile manufacturing sectors. This has raised concerns over disruption, especially in iPhone production units operated by Foxconn.
Foxconn recalls 300+ Chinese engineers from India
In a parallel move, Foxconn has instructed over 300 Chinese engineers and technicians in India to return home. Though they form less than 1% of the workforce, they hold critical roles in quality control and operations. Sources say their sudden exit could impact production speed and standards.
Seen as strategy to weaken India’s manufacturing rise
Industry experts believe this could be a tit-for-tat response from China, possibly due to visa issues faced by Chinese corporate staff in India. Earlier, China had also restricted exports of rare earth magnets, essential in EVs and electronics, further indicating pressure tactics to derail India’s growing manufacturing base.
Main Pointers...
- China stops supply of essential industrial machines to India.
- Over 300 Chinese engineers recalled by Foxconn from Indian plants.
- Move could delay iPhone production and affect quality control.
- Seen as strategy to counter India’s rising manufacturing dominance.
- Experts link China’s action to ongoing visa issues for their staff.
- Earlier, China also curbed rare earth exports to India.
- Indian government may file a detailed report on the matter soon.
Know more through question and answers
Q. Why did China stop machinery supplies to India?
China has halted deliveries of key machines and components critical for electronics and auto sectors, seen as an attempt to disrupt India's manufacturing growth.
Q. What is the role of the recalled Chinese engineers?
These engineers, although few in number, are involved in core production and quality control functions in iPhone factories and their absence may slow operations.
Q. Is this the first such move by China?
No, earlier China also restricted the export of rare earth magnets used in electric vehicles and electronics to India.
Q. Why is this seen as a tit-for-tat strategy?
Chinese corporate employees have reportedly faced difficulties obtaining Indian business visas, possibly prompting retaliatory economic steps by China.
Q. What is India’s current status in iPhone manufacturing?
India now accounts for 25% of global iPhone production. In 2024 alone, India exported iPhones worth $12.8 billion.
Q. Why is Apple shifting production to India?
To reduce dependence on China due to geopolitical tensions, cost advantages, local demand, and government incentives under the Make in India scheme.
Q. How is India supporting iPhone production expansion?
India is offering financial incentives, investing in local infrastructure, and improving workforce training to meet Apple’s production needs.
