India’s electronics industry has reportedly raised a red flag over what it describes as “informal trade restrictions” imposed by China. The industry warns that the covert measures being used by China could cripple India’s global competitiveness and jeopardize its ambitious $32 billion smartphone export target for the current fiscal year. According to a report in Economic Times, industry views China’s actions as a deliberate attempt to undermine India’s emergence as a global manufacturing powerhouse.In a recent letter to the government, the India Cellular and Electronics Association (ICEA), the industry body representing major players like Apple, Google, Motorola, Foxconn, Vivo, Oppo, Lava, Dixon, Flex, and Tata Electronics, wrote that China’s actions are “solely aimed at crippling India’s supply chains and undermining its rise as a global manufacturing hub.” The curbs, the ICEA highlighted, are already causing significant delays and inflating costs for manufacturers.The SOS letter has urged the Indian government to urgently intervene regarding China’s latest controls on capital equipment, critical minerals, and the movement of skilled technical personnel. Crucially, the ICEA emphasized that these restrictions are being enforced in a “planned, sequential manner without any formal notifications, and only through verbal instructions.”“While domestic production remains relatively insulated for now, export-linked manufacturing to the tune of $24 billion in FY25, projected to cross $32 billion in FY26 in smartphones has now come under serious risk,” the ICEA warned in its letter.
China’s ‘Leave India’ Diktat to Chinese engineers
Recently, there have been reports that China asked all Chinese engineers and technicians at Foxconn plants in India to leave the country. According to a recent Bloomberg report, Apple’s largest iPhone manufacturer Foxconn, has recalled over 300 Chinese engineers and technicians from its Indian production facilities, creating significant operational challenges as the iPhone-maker prepares for iPhone 17 manufacturing. The mass withdrawal, which began two months ago, reportedly leaves only Taiwanese support staff at Foxconn’s India plants.A large part of mobile phone manufacturing equipment is imported from China, and Chinese professionals have the expertise to operate it.
Government on Chinese engineers leaving iPhone maker Foxconn’s plant
As reported by the news agency PTI, the government has stated that it’s monitoring production targets and believes Apple has alternatives to manage any related issues. In a statement, a government source told the news agency: “Government is monitoring the situation. Apple has alternatives and they should be able to look at ways to handle this. Issue is primarily between Apple and Foxconn.
