China Catches on to Made-in-India, Restrictions on Manufacturing Partners

China appears to be now taking notice of Apple and other technology and car companies shifting manufacturing/assembly to India and other regions of the world. According to Bloomberg, China is making it difficult for people and specialist equipment required for high-tech manufacturing in India and Southeast Asia to exit the country. According to the report, which cites sources familiar with the topic, this could be an attempt to deter corporations from relocating manufacturing in expectation of greater tariffs under US President-elect Donald Trump.

According to sources familiar with the situation, Beijing has unofficially instructed regulatory agencies and local governments to prohibit technology transfers and equipment exports to certain regions. The goal is to boost domestic production, reduce potential job losses, and deter foreign investors from leaving China if the US applies further trade tariffs.

For example, Foxconn, Apple's principal assembly partner, has reportedly had difficulty deploying Chinese workers to its Indian factory and acquiring specialized machinery from China. While these concerns have not yet affected output, they do highlight the potential consequences of these limits.

According to report, Apple's China-based equipment suppliers have come under increasing scrutiny from Chinese government officials for exports to India. According to recent reports, Apple and Foxconn approached the Indian government for assistance in this matter. 

Apple and Foxconn are alleged to have requested urgent assistance from the Indian government as specialized manufacturing equipment is experiencing major delays at Chinese ports, endangering India's electronics manufacturing expansion ambitions.