A recent report has revealed China’s efforts to block advanced technology and skilled talent from reaching India. This move seems to be part of a broader strategy aimed at countering India’s growing prominence in global manufacturing.
Among the key areas impacted is Apple’s decision to ramp up iPhone production in India, a shift that has rattled Beijing.
Historically, China has been Apple’s manufacturing powerhouse, with 85% of iPhones produced there as recently as 2021. However, disruptions caused by China’s COVID-19 policies, rising U.S.-China tensions, and an increasingly restrictive business environment pushed Apple to diversify. India emerged as a key player, assembling 15 million iPhones in 2022 and accounting for 14% of global production by 2024. Commerce Minister Piyush Goyal has projected that India could soon manufacture 25% of all iPhones globally.
This rapid progress has not gone unnoticed. Reports suggest that China’s government has taken steps to slow India’s momentum. Specialized equipment shipments have been halted, and Chinese technical staff are being restricted from traveling to India’s factories. These measures are seen as part of a larger strategy to keep critical technologies, such as EV batteries and solar panel equipment, out of India.
Beyond iPhones, China’s restrictions extend to other industries crucial for India’s economic growth. In the electric vehicle sector, Beijing has reportedly discouraged its automakers from investing in India. Delays in the export of critical infrastructure and oil drilling equipment further demonstrate China’s intent to undermine India’s development. Even in the solar energy sector, Indian manufacturers face challenges due to their dependence on Chinese equipment.
China’s actions reflect its growing concern over India’s rise as a manufacturing hub. With its slowing economy, rising costs, and an aging population, Beijing is keen to retain its dominance in global supply chains. Former Foreign Secretary Vijay Gokhale notes that China views India’s progress as a direct threat, not just a parallel development. The anxiety is exacerbated by Apple’s rapid transition to India, highlighting the broader shift of global manufacturing interests.
Addressing these challenges will require India to adopt a strategic approach. Strengthening international partnerships is key. Joining initiatives like the Mineral Security Partnership has already helped India secure critical resources and reduce its dependence on China. Collaborating with developed nations facing similar challenges, especially in green growth sectors, offers another avenue for progress. Additionally, leveraging India’s vast domestic market can serve as a powerful negotiating tool, signaling that access to India’s market depends on reciprocal openness.
Investing in domestic manufacturing capabilities is equally critical. By bolstering local industries in EVs, solar technology, and critical minerals, India can reduce vulnerabilities and enhance its self-reliance. While managing China’s economic challenge won’t be easy, ignoring it is not an option. The stakes are too high for India’s industrial ambitions and its position in the global economy.
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