Why is Foxconn pulling out over 300 Chinese employees from India?
,
Apple
's largest contract manufacturer, has withdrawn more than 300 Chinese engineers and technicians from its Indian iPhone production facilities over the past two months, raising concerns over the stability of Apple's supply chain in India just months ahead of the
iPhone 17 manufacturing
ramp-up.
The unexpected recall, reported by Bloomberg, comes amid growing geopolitical friction between China and the United States, with Apple caught in the crossfire.
The development comes at a time when India now accounts for nearly 20% of global iPhone production. Foxconn recently invested $2.56 billion in its Devanahalli plant near Bengaluru and has plans to manufacture 100,000 iPhones by December. In March-May alone, Foxconn exported iPhones worth $3.2 billion from India, with 97% of them shipped to the United States.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Gujarat Mosquito Problem? Do This Immediately (Genius!)
Mosquito Eliminator
Read More
Undo
Why is Foxconn sending its Chinese employees back home?
While no official reason has been cited for the pullout, sources told The Times of India (TOI) that the Chinese government had instructed some of its nationals to exit India amid worsening trade relations and mounting visa restrictions on Chinese executives.
Also Read:
The curious case of iPhones- Why a small gadget in your pocket is making the US and China uneasy about India
Live Events
Beyond the workforce issue, there are reports that China is delaying the shipment of critical manufacturing machinery to India and has also placed restrictions on the export of rare-earth magnets used in electronics and automobiles. Industry sources said these actions appear to be part of a broader tit-for-tat response to India's tightening visa norms for Chinese nationals and increasing scrutiny of Chinese firms.
'There is massive pressure at the operations of Foxconn in India,' TOI quoted one source as saying. Similar concerns are also growing within Chinese smartphone makers such as Oppo and Vivo, which operate large facilities in India, the source said.
Why are the Chinese staff crucial?
While Chinese personnel make up less than 1% of Foxconn's workforce in India, they occupy crucial technical and operational roles. These include managing production lines, ensuring quality control, and overseeing factory automation.
Also Read:
The dragon is tightening its hold: Can India defy it?
'With the Chinese government asking its citizens to pull out, it may create disturbance in the production schedule of iPhones,' a source told TOI. 'Their numbers may be small, but they are vital for day-to-day operations, especially during the critical phases of product ramp-up and quality assurance.'
Apple's India bet faces new hurdles
The timing of the pullout is significant. Apple is counting on India to become its next major global manufacturing base, aiming to produce the majority of its US-bound iPhones in India by late 2026. The sudden exit of key personnel could delay these plans.
Indian government officials are reportedly aware of the issue and are monitoring developments closely. A detailed report is expected to be sent to relevant ministries, particularly in light of past attempts by China to block the export of factory equipment to India once it learns that a production line is being shifted out of China.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
24 minutes ago
- Business Standard
Latest LIVE: Heavy rains batter Himachal; 37 dead, ₹400 cr worth of damage estimated
Torrential rains have once again disrupted life across Himachal Pradesh, leaving more than 37 people dead and causing property damage worth over ₹400 crore, according to the State Disaster Management Authority. The India Meteorological Department (IMD) has issued a rain alert for the state until July 7, as monsoon showers continue to lash several regions. Officials from the Himachal Pradesh State Disaster Management Authority and the Revenue Department said the state has recorded losses exceeding ₹400 crore due to relentless rainfall. Rescue, relief, and search operations are in full swing, particularly in Mandi district, which remains the worst affected. Several roads in the region are blocked, and essential services have been disrupted. Prime Minister Narendra Modi began his first official visit to Trinidad and Tobago on Thursday (local time), where he was accorded a ceremonial Guard of Honour at Piarco International Airport. He was received by Prime Minister Kamla Persad-Bissessar, along with 38 ministers and four Members of Parliament from the Caribbean nation. This marks Modi's first visit to Trinidad and Tobago as Prime Minister, and the first bilateral visit by an Indian Prime Minister to the country since 1999. The visit is taking place at the invitation of Prime Minister Kamla Persad-Bissessar. During his two-day visit from July 3 to 4, Modi is scheduled to meet President Christine Carla Kangaloo and Prime Minister Persad-Bissessar to further strengthen bilateral ties. The Securities and Exchange Board of India (Sebi) has barred US-based trading firm Jane Street from accessing Indian securities markets for alleged manipulation. In an interim order, Sebi also directed the high-frequency trading firm to disgorge ₹4,844 crore in 'unlawful' gains. The ban will remain in effect until the firm complies with the order to surrender the alleged illegal profits. Sebi's investigation found that Jane Street was responsible for a substantial share of net buying in the 12 Bank Nifty component stocks and their futures. This 'burst of buying' was aimed at influencing the prices of these securities, enabling the firm to take significantly larger and more profitable positions in the highly liquid index options segment.
India Today
24 minutes ago
- India Today
Global trading firm Jane Street banned by Sebi from securities market
Sebi has barred US-based trading firm Jane Street Group from participating in the country's securities market. This move comes after the Securities and Exchange Board of India (Sebi) accused the firm of making unlawful gains through equity derivatives trading."Entities are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly," said Sebi in its order pertaining to Jane to an order published on Sebi's website, the regulator has ordered the seizure of Rs 48.4 billion (approximately $570 million), which it claims is the total amount of illegal profit made by Jane Street. Sebi has also directed Indian banks to ensure that no funds can be withdrawn from the firm's accounts without the regulator's approval."The total amount of unlawful gains earned by the JS Group from the alleged violations, as provided in Table 44i.e. Rs 4,843,57,70,168/-(Four Thousand Eight Hundred Forty-Three Crore Fifty Seven Lakh Seventy Thousand One Hundred and Sixty Eight Rupees only), shall be impounded, jointly and severally," said Sebi in its order. SEBI BANS JANE STREET FROM TRADINGSebi's order states that Jane Street Group and its related entities 'are restrained from accessing the securities market and are further prohibited from buying, selling or otherwise dealing in securities, directly or indirectly.'This decision effectively blocks the firm's operations in India's fast-growing equity derivatives market. The regulator did not specify the exact time period during which the alleged trading violations occurred, but the order reflects a significant crackdown on overseas institutional players operating in the MADE $2.3 BILLION IN DERIVATIVE REVENUEJane Street is one of the most active trading firms in the world, operating in equities, bonds, ETFs, and derivatives. The Bloomberg report notes that the firm generated more than $2.3 billion in net revenue from equity derivatives in India last year action is likely to affect not just Jane Street's India operations, but also send a strong message to other foreign entities involved in aggressive trading GROWING MORE WATCHFUL OF FOREIGN PLAYERSSebi has been investigating Jane Street's derivatives activity following complaints from certain market participants, who alleged that the firm's trades amounted to market manipulation. While details of the investigation remain confidential, the action suggests a deeper scrutiny of high-frequency trading behaviour in the Indian market.'This may signal Sebi's growing vigilance and willingness to assert control over foreign institutional activity making hefty gains in its derivatives market — particularly where such strategies blur the line between smart trading and market distortion,' Charu Chanana, Chief Investment Strategist at Saxo Markets in Singapore told DERIVATIVES MARKET UNDER THE SPOTLIGHTIndia is now the world's largest derivatives market by number of contracts traded. It has seen a rapid rise in foreign institutional interest, especially from firms like Citadel Securities, Optiver, and Jane Street. The country's market is also experiencing a surge in retail investor participation, with options premiums having increased 11 times in the past five the booming activity has also raised concerns among regulators about volatility, speculation, and possible manipulation in the market. Sebi's move against Jane Street is being seen as a sign that the regulator is willing to take strict action when it believes the trading environment is being exploited unfairly.- Ends advertisement
&w=3840&q=100)
First Post
26 minutes ago
- First Post
Brics bigger than G7: Expansion boosts global clout but Trump, China pose challenge
Brics has expanded from initial four to eleven members and has sought a greater say in the world's affairs in recent years, but the group has faced a challenge to its relevance from US President Donald Trump's direct threats and attempts by China to turn the group into an anti-West bloc to take on the United States. read more Over the past two decades, Brics has evolved from a forum of four emerging economies to a group of 11 nations that its supporters say is ushering true multilateralism in the world. Critics, however, say that the bloc is just a Chinese tool to unseat the United States to become the world's foremost superpower. The idea of Brics emerged in 2001 when then-Goldman Sachs Chief Economist Jim O'Neill argued that Brazil, Russia, India, and China had the potential to reshape the global economic landscape by 2050 due to their large populations, rapid economic growth, rising global influence, and rapid upward social mobility. STORY CONTINUES BELOW THIS AD In 2006, the four countries came together to form Bric — South Africa joined in 2010. With the expansion in 2024, the group has 11 members. Brics has positioned itself as a non-Western alternative for supporting economic growth and cooperation. Even though the group's influence has risen, challenges have also risen and the group now finds itself as a critical juncture. Brics is bigger than G7 but faces tough challenges In 2015, Brics launched New Development Bank (NDB) to fund infrastructure and development projects in developing countries. With initiatives like the NDB and the Russia-led grain exchange, and collaboration in other areas of emerging technologies and economies, Brics has positioned itself as an alternative to Western-dominated financial institutions like the International Monetary Fund (IMF) and World Bank. But, even as Brics continues to attract new members, the group is far from replacing IMF or World Bank and stares at formidable challenges — both internally and externally. Internally, the very purpose of Brics is under question as China has sought to become the leader of the group and turn it into an anti-Western bloc. Russia has supported China to the hilt in this quest. The two countries are already part of an anti-Western alliance also comprising Iran and North Korea (the so-called CRINK bloc) and want to make Brics an extension of that bloc — while the CRINK bloc clashes with the West militarily, Brics takes on the West economically. Externally, Brics has faced strong opposition from US President Donald Trump, who has dubbed any move by the group to dethrone the US Dollar as a red line. He has threatened Brics members with 100 per cent tariffs if they move towards a Brics currency or dedollarisation. With such challenges that put the very basis of the group in question, Brics stands as a unique blend of opportunities, aspirations, and challenges, and India as a founding member and a competitor of China has its own share of challenges. STORY CONTINUES BELOW THIS AD A non-Western group or an anti-Western group? India has gone to great lengths to explain to the West that Brics is not an anti-Western group and that it supplements Western institutions like the IMF and World Bank and does not seek to replace them. But China and Russia continue to push the group as an anti-Western bloc. Brics is definitely a China-dominated group as China is the largest economy and contributes to 40 per cent of the bloc's gross domestic product. Moreover, NBD is headquartered in Shanghai even as five initial members —Brazil, Russia, India, China, and South Africa— are equal shareholders of the bank. The presence of ironclad partners Russia and China (and Iran as well) in Brics further adds to the anti-Western impression of the bloc. However, India's presence in the group and, more importantly, its status as a founding member counterbalances the China-Russia influence. India has so far prevented the bloc from turning into an anti-Western bloc. In March, External Affairs Minister S Jaishankar dismissed fears of Brics trying to replace the US Dollar. Instead, India considers the strength of the US Dollar essential for global stability, said Jaishankar. 'I don't think there's any policy on our part to replace the dollar. As I said, at the end of the day, the dollar as the reserve currency is the source of international economic stability. And right now, what we want in the world is more economic stability, not less,' said Jaishankar. STORY CONTINUES BELOW THIS AD India has also used its status as an equal shareholder at NDB to prevent the bank from turning into an extension of the Belt and Road Initiative (BRI). As China is not just working to dethrone the United States, but is also looking forward to suppress India's rise, India's continued presence and assertion of its role as a founding member in Brics is a must. Anushka Saxena, a China researcher at the Takshashila Institution, previously told Firstpost that India's involvement in Brics and Shanghai Cooperation Organisation (SCO) is a must to ensure these institutions work for stated purposes and not become China's tools. 'In Brics, India's priorities lie in making sure that principled guidelines are laid out to set benchmarks for membership, in creating space for consensus-building against the possibility of China's influence-peddling, and in attempting to retain the image and brand value of Brics as a community of developing market economies demanding more voice in global governance,' she said Saxena. STORY CONTINUES BELOW THIS AD 'Similarly, in the SCO, India's role as a disruptor is vital. If China and Russia continue to propagate the idea that these groupings are anti-West, India's presence becomes necessary to maintain the balance and act as a bridge with the West,' Saxena further said.
