It’s no secret that iPhone manufacturing in China has suffered due to internal problems. In addition, Apple did not take kindly to the fact that the supply chain was often interrupted. That’s why Team Cook’s company decided to build an alternative manufacturing plant in the neighboring country India. As planned, Apple is gradually winding down business from China. However, China is quite annoyed by the sudden move of the tech giant. Especially the Chinese administration does not see the matter of choosing enemy country India as an alternative. As a result, whether out of anger or revenge, China has already begun to retaliate. China has accused Foxconn, Apple’s oldest manufacturing partner, which is currently expanding its business in India, of tax evasion as a target.
Foxconn’s investment and business expansion in India is frowned upon by China
It should be noted that Foxconn bought land in Telangana, India for the purpose of building a manufacturing hub or factory by spending about 126 crore rupees. Currently, about 75-80% of the overall iPhone production capacity is manufactured at this plant of Foxconn Technology Group. The company also said it will invest around Rs 58.24 crore to manufacture consumer electronics and components locally in India by 2027. Therefore, Foxconn’s relationship with India is quite good. In contrast, India’s relationship with China is like a mouse-and-rat relationship at the moment. As a result, China is harassing Foxconn to kill two birds with one stone i.e. to satisfy its anger towards both India and Apple.
However, due to such unnecessary restrictions from the Chinese administration, Foxconn is increasingly interested in expanding its manufacturing operations in India. It is believed that the company may soon shift its iPhone manufacturing business from China to India.
Incidentally, Foxconn’s subsidiary company has already set up a new factory in Hyderabad to manufacture Apple accessories like chargers and adapters. Besides, they are planning to build two new factories in Karnataka at a cost of Rs 60 crore, where processors and other mechanical products will be manufactured. One thing is clear from this that Foxconn is giving India a lot of importance.
Let’s get back to the topic. According to a latest report published by Reuters news agency, China has deliberately accused Foxconn of tax evasion and harassment in the name of investigation to disrupt it. There can be two reasons behind doing so.
- First, Foxconn is a company based in Taiwan. Currently China’s relationship with Taiwan is not very good. As a result, one of China’s goals is to put pressure on Taiwan’s upcoming elections. That is why Foxconn has been chosen as one of the targets.
- Second, China is not happy with Foxconn’s consistent business investment in India. So false allegations have been made.
Now it is to be seen how Foxconn settles the tax evasion case brought by China.