West indian countries

Chinese mobile phone companies may open factories in other countries due to India crackdown: report

Chinese mobile phone companies may leave India to set up manufacturing plants in other countries due to the growing crackdown, according to a report by the Global Times.

“Chinese smartphone brands are also eyeing Indonesia, Bangladesh and Nigeria as India’s replacements,” according to the report citing an India-based Chinese executive.

“Management of Chinese smartphone brands in India felt a palpable sense of being pressured by the Indian government’s repression and its [protectionist] actions aimed at improving the capacity of national companies to manufacture sophisticated electronic devices such as smartphones,” the executive said.

The report cites a recent deal between cellphone maker OPPO and the Egyptian government for a $20 million manufacturing facility there. The report said the deal could herald the exodus of Chinese companies from India.

“OPPO’s memorandum of understanding with the Egyptian government to set up a $20 million smartphone facility could be groundbreaking,” the Chinese executive told the Global Times.

India has stepped up its crackdown on Chinese companies over the years.

The Indian government is looking into cases of alleged tax evasion by three Chinese mobile companies – OPPO, Vivo India and Xiaomi.

The companies have been given formal notice by the Tax Intelligence Department (DRI) for customs fraud.

India has also banned more than 300 Chinese apps, including Tencent’s WeChat and ByteDance’s TikTok.

The country is now strengthening its domestic smartphone and chip manufacturing sector.

The Gujarat government has teamed up with Vedanta and Foxconn, aiming for an investment of Rs 1.54 lakh crore to achieve self-sufficiency in semiconductor manufacturing.

The Tata group is also said to be in talks with the Taiwanese company Wistron to increase iPhone production capacity by 500% in the country.

With IANS entries

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