Supply Chain Sabotage? China's Manpower Withdrawal From Foxconn India Raises Red Flags | Exclusive

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Last Updated:July 03, 2025, 12:08 IST

According to top intelligence sources, China's move aims to tarnish India's reputation as a reliable global supply chain partner.

The impact of disruptions at large factories like Foxconn's extends beyond the immediate loss of 300 engineers.

China is strategically targeting India’s ambition to become a global manufacturing hub, top intelligence sources have told CNN-News18. This is exemplified by the recent withdrawal of Foxconn manpower, which has disrupted the production of the iPhone.

Foxconn Technology Group has asked hundreds of Chinese engineers and technicians working in India’s iPhone factories to return home, financial news agency Bloomberg said in a report.

According to top intelligence sources, this move aims to tarnish India’s reputation as a reliable global supply chain partner.

China’s actions coincide with India’s efforts to expand high-tech manufacturing in electronics and electric vehicles under the Production Linked Incentive (PLI) scheme and the Make in India initiative. Top intelligence sources indicate that these non-kinetic moves follow a period during which President Xi Jinping was notably absent from the public eye for nearly two weeks.

Such tactics are designed to signal to multinational companies that establishing operations in India might invite Chinese retaliation in the future, sources say.

Intelligence sources confirm that China has been involved in coordinated delay actions that include withdrawing over 300 Chinese engineers from Foxconn’s India plants and delaying export approvals for critical machinery, alongside restrictions on magnet exports.

These disruptions are not isolated incidents but represent a threat to India’s economic security and strategic autonomy. According to top intelligence sources, these actions are timed to affect deliveries during tariff-sensitive periods, particularly in light of the tariffs imposed by US President Donald Trump on non-US-made iPhones. This has pressured Apple to increase production in India. The delays force Apple to either absorb the additional costs or reconsider its focus on India as an export hub, say sources.

The impact of disruptions at large factories like Foxconn’s extends beyond the immediate loss of 300 engineers. Top intelligence sources warn that the livelihoods of thousands of Indian workers and the broader supporting industries will also be significantly affected.