The rapidly emerging manufacturing sector in India may be shocked by the recent steps taken by China. Let us tell you that China is not only delaying the delivery of important machinery to be exported to India, but has also directed to recall them from several Indian factories including Apple’s contracting company Foxconn, including Most of its citizens. Along with this, China has also banned the export of magnets used in automobiles and electronic products, which can affect production in India. It seems that China has geared up to stuck the road in the way of the Government of India’s Make in India campaign.
Let us tell you that Foxconn -based factories, which are in Tamil Nadu and Karnataka, are employed in many Chinese experts, working in important areas like production and quality control. Although their number is less than 1% of the total employees, their role is very important. It is being told that withdrawing these employees by China may adversely affect the schedule of iPhone production in India. Let us also tell you that not only Foxconn, but the top Chinese smartphone maker companies like Oppo and Vivo are also worried about this situation. These companies have limited number of Chinese officials, but they feared that further restrictions may be taken after the move.
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Let us tell you that most of the components of mobile phones prepared in India are still imported from China. If these supply chains are obstructed, the country’s electronic manufacturing policy may suffer a major setback. Sources also say that this entire development is also being linked to business tension and visa sanctions in India-China relations. Sources believe that China is adopting a “Tit” policy by taking such action, as many Chinese authorities have faced difficulties in getting a trade visa in India. On the other hand, people associated with the industry say that they are going to submit a detailed report on the issue to the government so that the matter does not turn into a new crisis.
Let us tell you that the Government of India is also cautious about this development, especially because companies like Apple are now developing India as an alternative production center. Apple’s exports from India have now increased manifold and the government does not want any interruption in it. Sources also say that China has obstructed the supply of machines required for some major plants that are going to be built in India earlier, especially when they feel that it may affect production in China.
Let us also tell you that the delegation of the Indian vehicle industry is having difficulty going to China to speed up the import of rare minerals (magnets) as it is still awaiting formal approval for the meeting with the Chinese Ministry of Commerce. About 40-50 industry officials have got visas in May, but they are still waiting for formal approval from Chinese officials for the meeting on the matter. Let us tell you that the domestic vehicle industry has also sought support from the government to increase its imports from China in view of rare mineral shortage. A source said, “Chinese authorities have not given any time yet, so the delegation has not left yet.” The situation is bad because we have not yet issued a single license. ”The source said that if the situation remains the same, the domestic vehicle industry will face its shortage, resulting in a lot of loss of production. The domestic vehicle industry has been forced to take this step because the Chinese government has curbed the export of rare earth elements and magnets since April 4 this year.
Let us tell you that China has made special export license compulsory for seven rare earth elements and magnets. China has more than 90 percent of the global capacity of magnets processing. It is used in various fields including vehicles, home appliances and clean energy. Its important materials include Samaryium, Gadolinium, Terbium, Dysprocyum and Lutetium, which are used in electric motors, braking systems, smartphones and missile technology. Let us tell you that India had ordered more than 80 percent of its 540 tonnes of magnet imports from China in the last financial year. Now the impact of curb on its exports by China has started showing. By May 2025, about 30 import requests of Indian companies have been approved by the Government of India, but have not received the approval of Chinese officials. Due to this no consignment has come.
However, China’s reaction seems strategic to see manufacturing in India emerging as an alternative center globally. It is clear from China’s recent steps that it is getting uncomfortable with its declining influence and increasing competitive environment in India. This is the time for the Government of India and the industry to strengthen vigilance, coordination and domestic supply chains, so that such external obstacles do not stop the progress of the country.