China Moves to Thwart Apple’s Major iPhone Shift to India Amid Rising Tensions

April 25, 2025 | Location: Beijing, China

In a calculated move to curb Apple Inc.’s growing manufacturing pivot towards India, China is tightening its grip on foreign tech firms operating within its borders, signaling heightened economic rivalry between the two Asian giants.

Sources close to the matter revealed that Chinese regulatory bodies have increased scrutiny on Apple’s supply chain partners, particularly those based in Shenzhen and Zhengzhou—the heartlands of Apple’s Chinese production network. This comes amid reports that Apple plans to significantly ramp up iPhone production in India, especially in Tamil Nadu and Karnataka, aiming to make India a hub for its global exports.

China’s Strategic Pressure on Apple Suppliers

Beginning early April, the Chinese government initiated new regulatory checks, customs delays, and tax audits on companies like Foxconn, Luxshare, and Pegatron—Apple’s key suppliers. Insiders suggest these moves are part of a broader strategy to dissuade these firms from expanding operations outside China.

“Apple’s shift is seen as a national security and economic threat,” a Beijing-based analyst told China Daily Business. “Beijing wants to remind global firms that moving manufacturing out of China comes with consequences.”

India’s Rise as Apple’s New Favorite

India has been luring Apple with generous incentives under its Production Linked Incentive (PLI) scheme. Over the past year, iPhone assembly in India has risen by nearly 50%, with factories in Sriperumbudur and Hosur churning out millions of devices annually.

With tensions rising between the U.S. and China, and supply chain risks exposed during the pandemic, Apple has been keen to diversify. India’s rapidly improving infrastructure and a vast, youthful workforce have positioned it as the next big tech manufacturing hub.

Global Implications and Tech Industry Fallout

China’s tactics may create short-term bottlenecks for Apple, but experts argue that the long-term trajectory favors diversification. “Apple’s move to India isn’t just a business decision; it’s geopolitical,” said Anjali Deshmukh, a trade analyst in New Delhi. “China can slow it down, but it can’t stop the momentum.”

Meanwhile, smaller tech firms are closely watching the situation. If Apple withstands the pressure, others may follow suit, accelerating the East-to-South manufacturing migration.

Conclusion

As Apple quietly but firmly bets on India for its future, China’s reaction is loud and calculated. The world is witnessing not just a tech transition, but a shift in the balance of global manufacturing power. And in this tug-of-war, the stakes couldn’t be higher.