Chinese Smartphone Brands Shifting Manufacturing Out Of India? Find Out Why?

Considering the increasing crackdown, many Chinese mobile phone companies may leave India to set up manufacturing plants in other countries, as per a report of Global Times.

Chinese Smartphone Brands Shifting Manufacturing Out Of India? Find Out Why?

Chinese Smartphone Companies Leaving India

The report claimed, “Chinese smartphone brands are also looking at Indonesia, Bangladesh and Nigeria as replacements for India,” citing a Chinese executive based in India.

Further, the executive said, “The management in Chinese smartphone brands in India felt a palpable sense of being squeezed by the Indian government’s crackdown and its [protectionist] actions to improve domestic companies’ capability to make sophisticated electronics such as smartphones,”.

How Did This Happen?

A recent deal by mobile phone maker OPPO with the government of Egypt for a $20 million manufacturing plant there was cited by the report. 

Further claiming that the deal may herald the exodus of Chinese companies from India.

The Chinese executive said, “OPPO’s memorandum of understanding with the Egyptian government to set up a $20 million smartphone facility may be a pacesetter,” to the media agency.

India Stepped Up Its Game

Over the years, India has stepped up its crackdown on Chinese firms.

As we know, the Indian government is looking into cases of alleged tax evasion by three Chinese mobile companies including  OPPO, Vivo India and Xiaomi.

These companies were served notices by the Directorate of Revenue Intelligence (DRI) for duty evasion.

Earlier, India has banned more than 300 Chinese apps, including Tencent’s WeChat and ByteDance’s TikTok.

Now, it has started bolstering its domestic smartphone and chip manufacturing sector.

To achieve self-reliance in the field of semiconductor manufacturing, the Gujarat government has partnered Vedanta and Foxconn, aiming an investment of Rs 1.54 lakh crore.

Besides this, Tata Group is also in talks with Taiwan-based Wistron reportedly in order to ramp up iPhone production capacity by 500 percent in the country.

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