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14 Chinese contractors of Apple received permission to expand production in India.
As various sources have noted more than once in recent weeks, the trend towards the expansion of the production of Apple devices in India will also affect Chinese contractors, since the geographic location of the enterprise, and not its origin, is critical in this matter. According to recent reports, 14 Chinese contractors of Apple have already received permission from the Indian authorities to expand their production capacity in this country.
Among others, the contract manufacturer of AirPods and iPhone - the Chinese company Luxshare Precision Industry, as well as a division of the optical manufacturer Sunny Optical Technology Group Co. True, local laws mean that foreign manufacturers still have to find business partners in India.
The relationship between India and China cannot be called smooth, but the authorities of the first of the countries are aware of the potential benefit from the migration of production sites from China, which is stimulated both by the intensification of contradictions between the Celestial Empire and the United States, and by the general trend towards diversification of risks along geographical lines. Last year, the Taiwanese company Foxconn has already mastered the release of the latest generation of Apple smartphones in India with a minimum delay compared to China.
According to the source, the Indian authorities, in agreement with Apple, granted permission to expand activities to 14 companies, whose services it must use to increase the production of its products in the country. The Indian Tata Group already supplies Apple with a certain range of components, and in the future the number of local companies that have fallen into this chain should only increase. At least in India there will be more joint ventures with the same Chinese or Taiwanese Apple suppliers.
The border conflict in 2020 cooled relations between China and India for a long time, as a result of which Chinese companies lost the opportunity to open their representative offices in the latter country without special permission from the authorities. Chinese investors were also left without subsidies from the Indian government. Taiwanese manufacturers were treated more favorably, but expansion of their presence in India was not possible without the development of an ecosystem formed by Chinese suppliers. It is noteworthy that in the original list, Apple included 17 Chinese companies that needed permission to implement investment projects in India, but at least three suppliers were not selected due to suspicions of direct ties to the Chinese government.