China's Move to Thwart Apple’s India Ambitions: A Tactical Retaliation

China Deliberately Hampering iPhone Production in India

Apple's plan to increase iPhone production in India from 15% of global production to 25% by 2027 is facing significant obstacles due to actions taken by the Chinese government. According to reports by the Financial Times, China is using three main tactics to hinder this shift:

1. Travel Restrictions for Engineers: The Chinese government is making it difficult for engineers from Apple's manufacturing partners, such as Foxconn, to travel to India, tightening its grip on critical technological know-how amid escalating trade tensions.
2. Export Controls and Delays: New export controls are being proposed to retain key battery technologies and restrict the processing of critical minerals. Chinese customs delays are also impeding the flow of components and equipment to India.
3. Warnings to Component Manufacturers: Chinese component manufacturers are reportedly being warned not to set up production plants in India, preventing Apple from circumventing export blocks.

The Indian government, while supportive of foreign companies setting up manufacturing plants, is blocking Chinese companies from building new plants due to political conflicts with China. This further complicates Apple's efforts to diversify its supply chain out of China.

The current trade war initiated by the Trump administration has heightened tensions, leading to more aggressive actions against US companies like Apple.