India Crackdown: Due to India’s crackdown on Chinese smartphone brands, they are thinking of shifting business out of the country and opening factories in countries like Bangladesh, Indonesia and Nigeria. Such information is known from a report of Global Times.
Chinese smartphone brands are thinking of closing their business from India and opening factories in Bangladesh, Indonesia. Symbolic image.
Damadol status of business in India. Frequent IT raids, no parts to be sourced from China – making it very difficult for Chinese smartphone makers to do business in India. And so the Chinese phone makers are now thinking of doing business in other neighboring countries after withdrawing from India. According to a Global Times report, Chinese mobile phone companies may leave India and set up manufacturing plants in other countries as the crackdown escalates. “Instead of India, Chinese smartphone brands are considering opening factories in Indonesia, Bangladesh and Nigeria,” an official of a Chinese smartphone-maker doing business in India claimed to the Global Times.
The executive also claimed, “The management of Chinese smartphone brands clearly felt pressured by the Indian government’s crackdown and the government’s move to improve the capacity of domestic companies to make sophisticated electronics like smartphones.”
The report cites a recent deal by mobile phone maker OPPO with the Egyptian government, which calls for a US$20 million manufacturing plant. This deal is likely to trigger an exodus of Chinese companies from India, the report further noted.
“OPPO’s MoU with the Egyptian government to set up a $20 million smartphone facility could be a pacesetter,” the Chinese executive told Global Times. The Indian government has gradually stepped up its crackdown on Chinese companies over the past few years. The Center is looking into allegations of tax evasion by three Chinese mobile companies – OPPO, Vivo and Xiaomi.
The Directorate of Revenue Intelligence (DRI) has issued notices to companies for tax evasion. India has banned more than 300 Chinese apps over the past two years, including Tencent’s WeChat and ByteDance’s TikTok. The country is now strengthening its domestic smartphone and chip manufacturing sector.
Gujarat government has partnered Vedanta and Foxconn to invest Rs 1.54 lakh crore to achieve self-reliance in semiconductor manufacturing. Meanwhile, Tata Group is also said to be in talks with Taiwan-based Wistron to increase iPhone production capacity by 500 percent in the country.