Chinese employees working at Apple’s contract manufacturing plants in India have been asked to return home, according to a post on X by CNBC-TV18, citing their sources. This move is likely to impact the transfer of technology to Indian companies that rely on Chinese expertise for setting up and operating these facilities efficiently.

This development comes shortly after China imposed fresh restrictions on the export of rare earth materials and capital equipment to India. These restrictions are significant, as rare earths and such equipment play a crucial role in high-tech manufacturing, particularly in the electronics sector.

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China’s Rare Earth restriction

China’s new export rules, effective from April 2025, require companies to obtain permits from Beijing for shipments to India. This has caused major delays—and in some cases, complete halts—in the supply of essential components like rare earth magnets. These materials are vital for electric vehicles, advanced electronics, defence systems, and other high-tech manufacturing segments in India.

Setback to India’s manufacturing shift

According to CNBC-TV18 sources, the withdrawal of Chinese employees could act as a fresh hurdle for Apple, which is actively working to shift its electronics manufacturing base from China to India. With fewer Chinese experts on the ground, the pace of training, assembly line setup, and production scaling may slow down.

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Apple has been looking to expand its production footprint in India as part of a broader strategy to diversify its supply chains. However, the sudden return of Chinese staff has raised concerns over potential delays and disruptions to these plans.