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Opinion | India Must Hedge China’s Bid To Curb Its Manufacturing Rise

13 0
26.02.2025

It has always been a multifaceted relationship with China, with simultaneous contrasting developments.

On the one hand, the Chinese are engaged in successful peace negotiations to remedy the border clash dispute with India. On the other hand, it is denying the export of machinery and engineers to India to delay the inevitable: the shift of many multinationals relocating their manufacturing hubs from China to India.

On January 10, 2025, reports emerged that China had barred Chinese employees from travelling to Foxconn’s iPhone factories in India, while those already stationed there were being recalled. Additionally, shipments of specialised manufacturing equipment for making iPhones bound for India were halted, with Chinese authorities refusing to approve their export.

The question is: why? To halt Apple’s plans and hinder the development of manufacturing set-ups in India.

What we are witnessing is nothing short of economic warfare, although it may sound extreme. China’s strategy revolves around export denial. This isn’t a trade dispute; it’s a deliberate attempt to stifle India’s growth by restricting access to critical resources and expertise, making it crucial to consider where this may end.

The restrictions on Chinese manpower and equipment exports are designed to hinder Apple’s plan to manufacture the latest iPhone 17 in India and launch it there in 2025, and this is no coincidence. Disrupting the supply chain is a means to pressure Apple to reconsider its gradual transfer of operations away from China, particularly to India.

The chokehold isn’t limited to iPhones. China’s restrictions extend to critical minerals and Tunnel Boring Machines (TBMs). In August 2023, China imposed export restrictions on essential minerals like gallium and germanium, vital for India’s rapidly growing renewable energy sector. These restrictions jeopardise India’s ability to meet its solar power production targets, a malicious attempt to hold India’s renewable energy sector hostage.

In addition, China’s restrictions on German TBMs (Tunnel Boring........

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