Apple threaded the thread in the middle, and 14 red supply chain players, including Luxshare and Sunny Optical, obtained approval for factory expansion in India for the first time

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For the first time in India, 14 Chinese companies, including Foxconn’s rival Luxshare Precision Industry and lens manufacturer Sunny Optical Technology, have been approved to expand their factories. Industry insiders emphasize that the red supply chain has entered India , Taiwanese businessmen will face enormous challenges in the future.

14 Chinese companies have obtained licenses from India

A few days ago, Hon Hai (Foxconn) transferred part of its electronic parts production line from China to India, which attracted the attention of the market. In recent years, the confrontation between the United States and China and various export restrictions have made it increasingly difficult for foreign companies to operate in China. As a result, it coincides with a century-old epidemic, and the problem of over-concentration of the supply chain has been repeatedly highlighted.

Recently, in addition to asking Taiwanese companies such as Hon Hai and Pegatron to disperse their supply chains, Apple has also reported that 14 Chinese companies will also go to India to set up factories. AirPods and iPhone assembler Luxshare and a subsidiary of lens maker Sunny Optical have both received approval to expand factories, people familiar with the matter told Bloomberg .

People familiar with the matter emphasized that the first wave of Indian officials approving Chinese companies to India is to prepare for the next comprehensive approval, but these Chinese companies still need to find local joint venture partners in India.

David (anonymous), who works in Taiwan’s electronics foundry industry, revealed to “Key Comments Network” that it is expected that India will allow Chinese companies to enter the country, and the pressure on Taiwanese businessmen will also increase. It has taken root in Southeast Asia through joint ventures or reinvestment, such as Goertek, Yutong Technology, Lens Technology and other companies in Vietnam.

He emphasized that although the United States has blocked China in various ways, Chinese companies can still evade sanctions by “changing production locations”. The solar industry is a typical case, and David believes that the White House is aware of these situations, but it is hindered by American brands. The White House exerted pressure, taking cost and market considerations into account, so it was unable to completely block China.

David said: “This is a false issue. Many claims are that politics is more important than business. On the one hand, the United States desperately needs the Chinese market, and on the other hand, Chinese parts are still difficult to replace. Although the relationship between the United States and China has deteriorated in recent years, the It is a fact that U.S. companies, including Lara, rely heavily on China, so no matter what, the primary purpose is to contain China, not let China collapse.”

On the other hand, political tensions between China and India have intensified in recent years, but India still allows more Chinese companies to enter its technology manufacturing industry, showing that India has softened its attitude. “Bloomberg” emphasized that especially Indian Prime Minister Modi (Narendra Modi) has listed Made in India as the highest priority policy. However, the entry of Chinese companies into India is still a very sensitive matter, and the Indian government has not responded to this.

China-India relations begin to soften

Although Indian society still maintains considerable hostility towards China, especially in 2020 when the two countries have disputes on the border and fierce conflicts occurred, at least 20 people died in India, and the domestic anti-Chinese consciousness reached its peak. Since then, India has begun to ban Chinese technology companies such as Alibaba, Tencent, and Douyin have received the most attention in recent years for searching, investigating, and punishing Xiaomi.

As the Xiaomi incident spread, the Chinese Ministry of Foreign Affairs began to fight back against India. Zhao Lijian, spokesperson of the Ministry of Foreign Affairs, emphasized: “The Chinese government has always required Chinese companies to operate in accordance with laws and regulations overseas, and at the same time firmly supports Chinese companies in safeguarding their legitimate rights and interests. China hopes that India will provide fair, just and non-discriminatory services for Chinese companies investing in India. To improve the business environment, investigate and enforce laws and regulations, and boost the confidence of international investment.”

After Apple’s central coordination, India’s attitude has become vague, mainly because of economic considerations. “Bloomberg” directly pointed out that because there are assembly manufacturers in India, but the supply of parts and components is still far from enough to meet the demand for huge products, this approval list came into being.

In addition, another person familiar with the matter revealed that Apple actually provided a list of 17 Chinese suppliers, but several of them were rejected by India because of their direct relationship with the Chinese government. (Shenzhen YUTO Packaging) packaging, etc. Finally, David pointed out that Taiwanese companies must have a sense of crisis. If they only rely on the confrontation between the United States and China to operate, they will be betrayed sooner or later. Continuously improving industrial competitiveness is the way out for Taiwan’s future.

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