China’s recall of engineers from Foxconn’s iPhone plants in India is no surprise, says commodities investor Surya Kanegaonkar—calling it a calculated blow from an adversary determined to enforce a “unipolar Asia” and cripple India’s rise.
Beijing’s withdrawal of over 300 Chinese technicians from Foxconn’s Tamil Nadu and Karnataka facilities—critical to Apple’s next-gen iPhone 17 preparations—is widely viewed as a move to restrict technology transfer and stall India’s manufacturing ambitions.
“This comes as no surprise,” Kanegaonkar wrote on X. “India is seen as a flailing adversary, struggling to get off the ground.”
Foxconn has relied on Chinese engineers to train local teams and embed high-end manufacturing processes. Their sudden departure is expected to slow operations and hinder knowledge transfer. While Apple and Foxconn have turned to Taiwanese and Vietnamese replacements, and begun upskilling Indian workers, the gap remains.
Kanegaonkar pointed to a deeper structural vulnerability: “India attempting to industrialize while being entirely dependent on Chinese machine tools, rare earths and electronics components is absurd. Every part of the supply chain should have been studied and fixed yesterday.”
China’s recall strategy—backed by verbal instructions to restrict exports, talent movement, and specialized equipment—comes amid broader efforts to punish companies moving production out of China. The message to multinationals is clear: shifting supply chains to India may come at a cost.
India, which now produces 20% of global iPhones, is central to Apple’s plan to supply most U.S.-bound devices from India by 2026. But geopolitical risks threaten that trajectory.
Kanegaonkar didn’t just criticize China—he directed blame inward. “Lack of foresight and will to reform from within continue to hobble New Delhi’s plans… Endless diplomacy comes to nought in the face of an adversary’s leverage and hard power.”
“Being shown one’s place as a state dependent on the largesse of friends and foes alike should warrant introspection and urgent reform,” he said.