China deliberately hampering iPhone production in India in three ways, say reports
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Apples plan to boost iPhone production in India from an estimated 15% of global production today to 25% by 2027 is being deliberately hampered by the Chinese government, according to new reports.China is reportedly using a mix of three measures to make it harder for Apples manufacturing partners to transfer production to India iPhone production in IndiaApple has for years been working to lessen its dependence onChinaas a manufacturing center, with the pandemic exacerbating the risks of having so much iPhone production in one country.India is the companys second manufacturing home, with Apple gradually ramping up production from just the iPhone SE to now making the latest flagship phones. Its been widely reported that Apple has set a goal of making 25% of iPhones in India by 2027.The Indian government has been encouraging this ramp-up through a series of tax breaks on imported components.China deliberately hampering this shiftTwo reports in the Financial Times say that China appears to be attempting to hamper this shift of production out of the country.First, it suggests, the Chinese government is making it hard for engineers to travel to India.Beijing is tightening its grip on cutting-edge Chinese technology, aiming to keep critical knowhow within its borders as trade tensions with the US and Europe escalate. Chinese authorities in recent months have made it more difficult for some engineers [] to leave the country [] Among the companies to be hit is Apples main manufacturing partner Foxconn, which has been leading the Silicon Valley groups supply chain diversification into India.Second, it is using export controls to block or delay the movement of equipment and components.Chinese authorities have proposed new export controls to retain key battery technologies, and moved to restrict technologies for processing critical minerals, according to multiple industry figures and ministry notices [] An Indian official also alleged China was using customs delays to impede the flow of components and equipment heading south.Finally, Chinese component manufacturers are reportedly being warned not to establish production plants in India. That would mean Apple cant circumvent export blocks by having components made in India.The reports say that the new trade war with China initiated by the Trump administration has increased tensions, and led to the government taking a harder line with American companies.Indian government not helping in some areasWhile the Indian government has been keen to persuade foreign companies to establish manufacturing plants in the country, the FT reports that political conflict with China has seen the government blocking Chinese companies from building new plants.Apple supplier Luxshare is said to be one of the companies refused permission.9to5Macs TakeChina was never going to sit back quietly while Apple shifted more and more production outside the country, so it was always likely that the government would find ways to make life harder for the iPhone maker.But the current trade war means we can expect increasingly hard-nosed action by Chinese authorities against US companies, and Apple is of course a prime target. Unless Trump backs down, which currently looks unlikely, things are only going to get tougher.Photo byXimena IbaezonUnsplashAdd 9to5Mac to your Google News feed. FTC: We use income earning auto affiliate links. More.Youre reading 9to5Mac experts who break news about Apple and its surrounding ecosystem, day after day. Be sure to check out our homepage for all the latest news, and follow 9to5Mac on Twitter, Facebook, and LinkedIn to stay in the loop. Dont know where to start? Check out our exclusive stories, reviews, how-tos, and subscribe to our YouTube channel
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