Lahore( The COW News Digital)In a major escalation of the ongoing tech and trade tensions between China and India, Beijing has imposed sweeping restrictions on technology transfer to Indian companies and halted the supply of rare earth metals critical to electronics manufacturing.
According to sources, Chinese authorities have ordered the immediate withdrawal of all Chinese scientists and tech experts from Foxconn’s factories in India, where Apple iPhones and other electronic devices are produced. Foxconn, a Taiwan-based firm, relies heavily on Chinese expertise to operate its manufacturing units across Asia.
The move comes as part of China’s broader strategy to counter what it perceives as a U.S.-backed attempt to replace China with India as the next global manufacturing hub. Over the past two decades, Washington has actively encouraged American companies to shift operations from China to India as part of its economic and strategic pivot in Asia.
However, the recent Chinese retaliation signals a dramatic turning point. In the first phase, China has significantly reduced exports of rare earth elements to India. These metals are essential in the production of smartphones, chips, solar panels, wind turbines, and advanced electronics. China currently accounts for over 70% of the global rare earth supply.
The shortage of these crucial materials is already beginning to affect production in Indian factories. Industry insiders report a looming crisis in mobile phone and semiconductor manufacturing, threatening India’s ambitions to become a tech and electronics powerhouse.
Beijing has also imposed a complete ban on transferring Chinese technology to Indian firms, further hampering India’s high-tech aspirations. The ban is expected to severely affect joint ventures and contract manufacturing units that rely on Chinese innovation and R&D.
The Indian government under Prime Minister Narendra Modi has long pushed to transform the country into a global tech manufacturing hub. But China’s assertive countermeasures have cast serious doubt on the feasibility of that vision.
Analysts say this emerging tech cold war could reshape global supply chains and has the potential to disrupt the geopolitical landscape in Asia. The situation may also complicate India’s strategic relations with both China and the U.S., placing it at the center of a new global tech rivalry.
