- China’s Resistance to Apple’s India Expansion: Beijing is trying to block Apple’s plan to raise Indian production from 15% to 25% by 2028.
- Obstructing Technology and Exports: China is restricting engineers, slowing customs, and tightening export controls.
- Geopolitical and Trade Tensions: The move aligns with rising U.S.-China trade tensions and India-China rivalry.
China is deploying every possible strategy to prevent Apple from ramping up iPhone production in India. According to JPMorgan and Bank of America, Apple aims to increase its Indian manufacturing output from the current 15% to an estimated 25% by 2028. This shift is driven by the need to diversify risks—such as those exposed during the pandemic and worker protests—and to take advantage of tax incentives offered by the Indian government.
Apple has progressively increased iPhone production in India, with Foxconn assembling devices in Karnataka and Tamil Nadu. Initially limited to iPhone SE models, production now includes high-end models like the iPhone 16 Pro and Pro Max. The collaboration with Indian conglomerate Tata Electronics further expands possibilities, including potential chip supply for future iPhone generations.
Despite this shift, China remains the dominant force in Apple’s supply chain. In 2024, factories in Henan province—the site of Apple’s largest assembly plant—exported 53 million iPhones, enough to meet annual U.S. demand. However, Beijing is determined to obstruct Apple’s diversification plans through several measures.
China is tightening restrictions on skilled engineers leaving the country and on the export of Chinese-manufactured machinery. Companies such as Foxconn and Luxshare, key Apple suppliers, are affected. Moreover, many assembly lines are programmed in Mandarin, requiring Chinese technicians to handle maintenance abroad. Beijing is also increasing scrutiny over exports to ensure critical technologies remain within China.
Reports indicate that customs processes are being deliberately slowed to disrupt the movement of components and equipment to overseas locations—particularly India. Furthermore, Chinese suppliers are being pressured not to establish production facilities in India, limiting Apple’s options for sourcing components outside China.
According to the Financial Times, these measures are part of a broader effort to safeguard China’s domestic production in response to escalating trade tensions with the U.S., particularly under the Trump administration. The strained China-India relationship further complicates Apple’s ambitions to reduce reliance on Chinese manufacturing.
As Apple pushes ahead with its India strategy, China’s countermeasures highlight the growing geopolitical and economic stakes in global supply chains. The battle over iPhone production is just one chapter in a broader contest for technological and industrial supremacy.
