China playing double game with India? After opposing US tariffs on India, THIS Chinese company pulls 300 engineers from…
China is making strategic moves in its relationship with India. Earlier on Thursday, China firmly opposed the Trump administration’s whopping 50 per cent tariff on India with Chinese envoy Xu Feihong saying silence or compromise only “emboldens the bully” in the face of such action. According to the media reports, the supply of rare earth magnets, fertilizers, and pharmaceuticals to India has reportedly resumed. However, now China is recalling a few of its engineers, reflecting a cautious approach to its continuing dealings with India.
Which Chinese company has pulled engineers from India?
Yuzhan Technology, a subsidiary of Foxconn, has recalled around 300 Chinese engineers located in its India facility. This is the second such move in recent months where the Taiwanese group had to do so in recent times, according to sources familiar with the matter who spoke to ET.
This development comes at a time when the ties between the two nations seem to be improving slowly, and both parties are taking actions to relax tensions and return to economic and diplomatic relations.
Earlier news surfaced on July 2 that Foxconn, an Apple supplier, had called back about 300 engineers and technicians from its iPhone facilities in India. The most recent move by its subsidiary, Yuzhan Technology, involves a relatively equal number of engineers, according to people with knowledge of the developments, reported ET.
Yuzhan Technology is going to have a Rs 13180 crore display module assembly plant in Tamil Nadu. Foxconn said in a stock exchange filing in May that it would invest $1.5 billion in its Yuzhan unit as Foxconn shifts more iPhone production out of China because of the potential for high U.S. tariffs.
How are U.S. trade pressures influencing China and India’s relations?
China-India relations have seen significant changes in the last few weeks. The U.S. has been pressuring both countries on trade and tariffs, which has brought the two countries together. According to an ET report, one of the people cited above told ET, “Foxconn has informed the government that they have been asked to send back all the Chinese expat employees whom Yuzhan Technology brought to India to set up the component ecosystem and factory with immediate effect.”
“They said this is the latest incident and is one that is being targeted at them. The company has had to send back 300 engineers this time. Also, there were 60 other engineers who were to come to India but have been asked not to come now,” the source further stated.
Story Highlights
- Yuzhan Technology, a subsidiary of Foxconn, has recalled around 300 Chinese engineers located in its India facility.
- Yuzhan Technology is going to have a Rs 13180 crore display module assembly plant in Tamil Nadu.
- China-India relations have seen significant changes in the last few weeks.
- The U.S. has been pressuring both countries on trade and tariffs, which has brought the two countries together.
According to the source, Beijing has also requested Foxconn Chairman Young Liu to prepare a report on the company’s investments in India. Queries sent to Apple, Foxconn, and the Ministry of Electronics and Information Technology remained unanswered as of Thursday.
PM Modi will travel to the Chinese city of Tianjin for the SCO summit to be held on August 31 and September 1.
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