Amid the on-going tensions related to the India-China border issue, the Indian government recently banned 59 Chinese applications, including the likes of TikTok, CamScanner, ShareIt, among others.
Now, it is being reported that the Indian government is also blocking shipments coming to the country from China. This is now several impacting the manufacturing firms in the Indian market as the crucial components are being held up.
As per the report, the Apple iPhone product in India has been halted because the Indian government has blocked shipments coming from China to India. A lobby group representing US-based companies in India has written to India’s Commerce Minister that holding up shipments is barring firms to do business in the country.
Foxconn, which is the contract manufacturer for Apple, cannot receive supplies for its two factories in India. With this, hundreds of employees have been left without any work this week and could severely impact the business if the issue is not addressed.
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The report claims that more than 150 shipments of Foxconn India with smartphone components and other electronic parts have been stuck at the port of Chennai. The two units of Foxconn in Tamil Nadu and Andhra Pradesh are also assembling Xiaomi smartphones along with Apple iPhones.
Apple started manufacturing iPhones in the Indian market with the original iPhone SE and is now also manufacturing the iPhone XR in the country. This keeps Apple away from hefty import tax and could offer its phones at a comparatively lower price as it saved Apple around $100-200 on import tax.
Sentiments about boycotting Chinese products have been rising in India because of the COVID-19 pandemic as the coronavirus originated from China. However, the recent escalation of tensions between India and China regarding a border dispute is taking this to another level, with the Indian government announcing new restrictions from Chinese businesses to operate in India.
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(Source)
