Paper: GS – II, Subject: International Relations, Topic: India and its neighbourhood, Issue: Lessons for India to tackle China.
Context:
Over 300 Chinese engineers withdrawn from Foxconn’s iPhone facilities in Tamil Nadu and Karnataka. It has implications for India’s economic and strategic autonomy and lessons for countering China’s tactics.
Key Highlights:
China’s Move: Engineer Recall:
- China’s moves: China uses specialized workforce recalls, export restrictions on rare earths (like gallium, graphite, germanium) and critical equipment. It also imposes capital controls and informal barriers to restrict investment outflow.
- Focus: Undermine India’s access to advanced manufacturing and critical raw materials.
- Nature of the move: It is a deliberate geo-economic tactic to hinder India’s rise in global manufacturing and aims to preserve China’s manufacturing primacy and disrupt India’s global export ambitions.
Impact on India:
- Hindered Progress: Hinders India’s progress in Electronics, Green energy and Heavy industries
- Economic Disruption: Disrupts India’s aspirations of becoming a global manufacturing hub.
- Exploitation: China exploits India’s dependence on its technologies and raw materials.
Lessons for India:
Conclusion:
China’s calibrated economic strategies are designed to delay India’s rise and preserve its dominance. India must be prepared for disruptions, and focus on long-term technological self-reliance and resilient supply chains. India’s ambition to become a global manufacturing hub needs proactive policy, security foresight, and investment-friendly governance.
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