'China will do everthing to cripple India': Economic expert warns Delhi as Foxconn removes Chinese staff from iPhone plants

Economic Times

7 hours ago

China pulls out trained workforce
'India seen as a flailing adversary'
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China's move to withdraw over 300 engineers from Foxconn 's iPhone manufacturing facilities in India has raised concerns over its impact on Apple 's production plans and India's manufacturing goals. The engineers, who were working at Tamil Nadu and Karnataka plants, played a key role in preparing for the next-generation iPhone 17.The recall of Chinese technicians is expected to disrupt ongoing training and delay the rollout of high-end manufacturing processes. Foxconn had heavily depended on these experts to guide local teams. While the company is now trying to fill the gap with Taiwanese and Vietnamese specialists and is training Indian workers, operations may still slow down.Commodities investor Surya Kanegaonkar, commenting on the development, said this was part of China's strategy to maintain dominance in Asia.'This comes as no surprise,' Kanegaonkar wrote on X. 'India is seen as a flailing adversary, struggling to get off the ground.'He said the exit of Chinese engineers should be viewed as a calculated attempt to block the transfer of technical know-how and hinder India's growth in electronics manufacturing.Kanegaonkar warned that India's reliance on Chinese supply chains remains a serious risk. He said the country still depends on China for machine tools, rare earth materials, and electronic components.'India attempting to industrialise while being entirely dependent on Chinese machine tools, rare earths and electronics components is absurd. Every part of the supply chain should have been studied and fixed yesterday,' he said.China's action is likely a part of a broader push to discourage companies from moving manufacturing out of China. Verbal orders to stop export of machines, talent, and components have also been reported. The message to multinationals is clear, relocating operations to India may come at a cost. India now manufactures nearly 20% of all iPhones. Apple plans to source a majority of its U.S.-bound iPhones from India by 2026. However, such moves by China could slow that progress.Kanegaonkar also criticized Indian policymakers for not preparing adequately for such situations.'Lack of foresight and will to reform from within continue to hobble New Delhi's plans… Endless diplomacy comes to nought in the face of an adversary's leverage and hard power,' he said.'Being shown one's place as a state dependent on the largesse of friends and foes alike should warrant introspection and urgent reform,' he added.The exodus comes as a major disruption to Apple's India expansion strategy, particularly as Foxconn constructs a new iPhone assembly facility in the region. While product quality may remain unaffected, assembly line efficiency could suffer during the critical ramp-up period for next-generation iPhone production.Beijing officials have quietly pressured regulatory agencies and local governments to restrict technology transfers and skilled labor exports to India and Southeast Asia, Bloomberg News reported. This coordinated effort aims to prevent Chinese companies from relocating manufacturing capabilities to competing nations amid escalating US-China trade tensions. The strategy extends beyond personnel, encompassing specialised equipment and technical know-how essential for high-tech manufacturing. China's actions come as countries like India and Vietnam aggressively court global technology companies seeking to diversify their supply chains away from Chinese dependence.