iPhone production in India interrupted due to China-India dispute

After Indian authorities imposed a ban on 59 Chinese-based apps which include TikTok and WeChat, it looks like the tensions between India and China are now affecting the production of devices including Apple’s iPhone. Most companies rely on Foxconn for local assembly and it is reported that components arriving from China have been held by Indian customs for additional clearance. Apparently, Indian authorities are conducting 100% physical checks on Chinese imports.

It is reported Taiwanese contract manufacturer Foxconn had no major work this week as shipments of components were stuck. It is said that more than 150 Foxconn shipments which contain smartphone and electronic parts were stuck at the port of Chennai. The two Foxconn plants mainly assemble smartphones for Apple and Xiaomi.

According to Reuters’ report, two officials at the ministry that oversees the customs department had said that the inspection measures were temporary and will ease soon. However, it was said that shipments of non-Chinese companies being impacted will be cleared on priority.

Since Apple is an American company, it is reported by The Economic Times that they could be spared from the imposed 100% physical checks of imported goods. The Department of Promotion of Industry and Internal Trade (DPIIT) has flagged the issue to the Finance Ministry after the US-India Strategic Partnership Forum had raised its concerns over the matter.

The recent restrictions appear to be a response to the ongoing dispute on the India-China border at the Galwan Valley. A few weeks ago, there was a deadly clash with at least 20 Indian soldiers were killed. The Indian government had accused China of breaking an agreement to respect the Line of Actual Control (LAC) while China says that India had crossed the border twice, and had provoked and attacked Chinese personnel.

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