Foxconn Withdraws Chinese Staff from India

Foxconn, Apple Inc.'s primary iPhone assembler, has sent over 300 Chinese engineers and technicians back home from its manufacturing facilities in India over the past two months. This move is seen as a significant blow to Apple Inc.'s strategy to shift more iPhone production to India, which aims to produce 20% of the world's iPhones and most US-bound iPhones by late 2026. While the exact reason for the withdrawal is unclear, it coincides with reports that China is verbally advising regulators to tighten controls on technology transfers and equipment exports to India and Southeast Asia, seemingly to slow the migration of manufacturing out of China. The departure of experienced Chinese staff is expected to hinder the training of local Indian workers and the transfer of manufacturing technology, potentially raising production costs and affecting efficiency on the assembly lines. This development occurs amidst tense relations between China and India and renewed US tariff proposals under Donald Trump, which have spurred companies like Apple Inc. to diversify their supply chains.