China is reportedly tightening restrictions on the movement of employees and specialised equipment essential for high-tech manufacturing to India and Southeast Asia.
This move is seen as an effort to prevent companies from relocating production in anticipation of potential higher tariffs under US President-elect Donald Trump, reported Bloomberg, citing sources.
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The restrictions are impacting companies such as Taiwan-based Foxconn, a key Apple partner.
Officials reportedly have “verbally encouraged” regulatory authorities and local governments to limit technology transfers and equipment exports to these regions, said the source.
The aim is to strengthen China’s own production capabilities, cut down potential job losses, and deter foreign investors from leaving if the US imposes new trade barriers.
Foxconn, Apple’s main assembly partner, has faced challenges in dispatching its Chinese staff to India and receiving additional specialised machinery from China. However, there has been no immediate impact on production, according to sources, reported the news publication.
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By GlobalDataIn a statement, China’s Ministry of Foreign Affairs has said that the nation “treats all countries equally and is open to enterprises” globally.
“China has never done anything that harms interests of other nations to the detriment of itself.”
India is a crucial part of Apple’s strategy to reduce its reliance on China amid ongoing trade tensions between US and China.
Foxconn’s assembly plant at Chennai, in the Indian state of Tamil Nadu, contributes significantly to India’s iPhone exports, although the majority of Apple handsets are still manufactured in central China.
China is reportedly keen to prevent Foxconn from further diversifying its production away from China.
The restrictions have also affected the production of electric vehicles and solar panels in India. Companies such as BYD, a Chinese EV maker, and Waaree Energies, an Indian solar-panel manufacturer, have reportedly been impacted.
Beijing previously expressed its intention to limit the transfer of advanced technology for EV manufacturing.
India and China have recently eased a four-year border stalemate and are gradually normalising relations. However, India continues to maintain strict curbs on Chinese investment and restricts visas for Chinese nationals, including engineers and technicians in high-tech manufacturing.
Earlier in January 2025, China’s Ministry of Commerce proposed new export restrictions on technologies used in producing battery components and processing critical minerals like lithium and gallium.
