Beijing seeks report from Foxconn chair on India operations as expats pulled back

According to industry sources cited by ET, Yuzhan Technology, a Foxconn affiliate, has recalled some 300 Chinese engineers from its manufacturing site in India. This is the second event of this kind for the Taiwanese tech giant in recent months. The ET article claims that the move comes as India and China’s diplomatic ties are getting better. Foxconn, an Apple supplier, was also said to have recalled about 300 Chinese engineers and technicians from its iPhone manufacturing facilities in India in July. Yuzhan Technology is investing Rs 13,180 crore to establish a display module assembly facility in Tamil Nadu. As part of its plan to move iPhone production from China due to possible US tariff concerns, Foxconn said in May that it will invest $1.5 billion in the Yuzhan facility. The recalls take place during a diplomatic reorientation between Beijing and New Delhi, as Washington exerts pressure on both countries over trade.

A source 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 claimed that this is the most recent occurrence and that they are the target of it. This time, the corporation had to return 300 engineers. Additionally, 60 additional engineers were scheduled to travel to India, but they were urged not to do so at this time,” the person continued. According to the article, Beijing has also asked Young Liu, the chairman of Foxconn, to provide a report on the company’s Indian interests.

A second source told ET that a “slightly lesser numbers” of Chinese engineers were recalled. However, there is expected to be minimal operational impact. “Foxconn has been proactive to get engineers from countries like Taiwan and elsewhere to offset the impact that could come with such disruptions,” a another insider stated. In the meantime, China and India are taking steps to improve their relationship, such as reducing border tensions, starting direct flights again, and looking into trade cooperation in vital industries like rare earths.