Even as the Indian government is monitoring the return of Chinese employees from Foxconn Technology Group, sources aware of the matter told CNBC TV18 that the Centre is “seized of the issue” and is open to working with the industry to explore solutions.
Foxconn has asked hundreds of Chinese engineers and technicians to return back from their iPhone factories in India. According to a Bloomberg report, the move began about two months ago, and over 300 Chinese staff have already left. As of now, majorly the support staff from Taiwan is still in India.
Govt says no restriction on hiring foreigners
While the exact reasons behind the move are not clear, sources said that there is no formal restriction announced by China. “The industry is free to engage with employees of any country. It’s up to companies to decide the best approach to manage and retain talent,” sources told CNBC TV18.
The move comes after China reportedly told its officials earlier this year to restrict tech and equipment exports to India and Southeast Asia, possibly to discourage companies from moving manufacturing out of China, according to Bloomberg. However, no formal restriction has been announced by Beijing.
Sources said the Centre is open to working with the industry to explore solutions such as identifying and training local talent or relocating expertise from other countries like Taiwan.
Foxconn’s 300 Chinese workers asked to fly back
Foxconn employs hundreds of Chinese nationals in India and many of them are involved in operations, training, quality control, and production, and this development could have a direct impact on its India operations.
On Wednesday, Bloomberg had reported that more than 300 Chinese workers have been asked to fly back to their home countries from the iPhone manufacturing plants in southern India. The sudden departure of Chinese personnel could delay the transfer of technical know-how, potentially slowing progress.
This is part of ongoing tensions in the tech supply chain. China has already limited exports of rare earth materials and some key equipment to India. According to industry experts, the new employee-related rules could further slow down efforts to move electronics manufacturing out of China.