China Quietly Undermining India’s Manufacturing Ambitions, Say Top Intelligence Sources

 In what appears to be a calculated geopolitical move, China is actively working to undermine India’s growing aspirations to become a global manufacturing hub, according to top intelligence sources cited by CNN-News18. The latest indication of this strategy is the sudden withdrawal of hundreds of Chinese personnel from Foxconn’s iPhone production facilities in India—an action that has reportedly disrupted critical manufacturing operations.

A report by financial news agency Bloomberg confirms that Foxconn Technology Group has instructed a large contingent of Chinese engineers and technicians stationed at its Indian facilities to return to China. Intelligence sources interpret this move as part of a broader effort to erode confidence in India’s reliability as a global supply chain partner.

The timing of these actions aligns with India’s aggressive push to scale up high-tech manufacturing under key initiatives such as the Production Linked Incentive (PLI) scheme and the Make in India programme, particularly in sectors like electronics and electric vehicles. Sources believe these disruptions are part of a “non-kinetic strategy” being employed by Beijing, particularly during a recent period when Chinese President Xi Jinping was notably absent from public view for nearly two weeks.

“These actions serve as a warning to multinational corporations,” one senior official noted. “The message is clear—choosing India as a manufacturing base could invite strategic pressure or retaliation from China.”

Intelligence officials have also confirmed a pattern of coordinated delays and obstructions, including the withdrawal of over 300 Chinese engineers from Foxconn’s India operations, delayed approvals for critical export machinery, and restrictions on the export of rare-earth magnets. These developments are seen as part of a broader attempt to compromise India’s economic security and strategic autonomy.

The timing of the disruption is particularly critical. With U.S. President Donald Trump imposing tariffs on non-U.S.-made iPhones, Apple has been increasingly reliant on Indian facilities to scale up production. By creating delays during tariff-sensitive periods, China’s actions are forcing companies like Apple to either absorb higher costs or reconsider India as a viable alternative to China for exports, sources said.

The consequences extend far beyond the immediate departure of Chinese engineers. Intelligence sources caution that such disruptions threaten the jobs of thousands of Indian workers employed directly or indirectly in and around Foxconn’s manufacturing facilities, while also posing risks to associated industries across the supply chain.

India's efforts to establish itself as a dependable global manufacturing destination may now face significant headwinds—not just from market forces, but from geopolitical sabotage.