An Apple store in Chengdu, Southwest China’s Sichuan Province. Photo: IC
Luxshare, one of Apple’s largest Chinese component and finished product makers, is shifting its new investment of $330 million to Vietnam from India, where it failed to expand its business, according to media reports.
Chinese experts said that the shift indicates the rising protectionism of the Indian market against foreign investors, particularly those from China, which will affect the supply chain integrity of Apple in India and shatter the confidence of other investors in the South Asian market.
After several failed attempts to expand its operations in India for nearly three years, Luxshare decided to shift a new investment of $330 million to Bac Giang in Vietnam, Indian media outlet Business Standard reported on Thursday.
The license for the investment was cleared last week by the Vietnamese government. This raises its total investment in Vietnam to $504 million, the report said.
The Chinese technology company will make diverse products ranging from cables for smartphones and communications equipment to touch phones and smart watches in the country, according to the report.
Luxshare couldn’t be reached for comment as of press time.
Luxshare Precision’s withdrawal reflects a determined decision after facing numerous challenges during its years of operation in India, Chinese experts said.
“This decision may affect manufacturing enterprises in Apple’s supply chain and the overall supply chain for Apple phones in India,” Liu Zongyi, secretary-general of the Research Center for China-South Asia Cooperation at the Shanghai Institutes for International Studies, told the Global Times on Sunday.
Similar cases have taken place in other sectors. Chinese vehicle maker BYD reportedly told its India joint-venture partner that it would shelve plans for a new $1 billion investment to build electric cars after its investment proposal faced scrutiny from New Delhi, Reuters reported on July 28, citing people with knowledge of the discussions.
BYD planned to expand into electric vehicle manufacturing and assembly in Vietnam, media reports said.
Indian government moves targeting companies from China have been relentless. For example, Indian police have accused Chinese smartphone makers Xiaomi and Vivo of helping transfer funds illegally to a news portal under investigation on charges of “spreading Chinese propaganda,” an allegation that the Chinese companies strongly denied.
India’s intensified scrutiny of Chinese enterprises has gone so far as interference in the appointment of senior executives in Chinese companies and restricting visas for Chinese personnel, among other actions.
The withdrawal also indicates a lack of understanding among some international investors about the Indian market, Liu said.
“India continues to present obstacles for foreign investors, particularly affecting the confidence of Chinese companies,” Liu said.
The deteriorating business environment for Chinese companies in India has been marked by ongoing inspections, investigations, restrictions on personnel and visa denials – as seen in Chinese automaker BYD’s Indian electric vehicle assembly plant with no personnel from China.
This situation is severely affecting the normal operations and confidence of Chinese businesses in the country, an India-based senior industry insider told the Global Times on Sunday on condition of anonymity.
Some companies in India are exploring alternatives, investing in markets like Vietnam, Mexico, Europe and other regions.
“India is not the sole option for Chinese companies to expand globally, and choosing other markets appears to be a prudent decision given the circumstances,” the insider said.
The implementation of “Make in India” relies significantly on foreign investment and external technological support. The Indian government’s amplification of nationalist sentiment goes against normal business practices, as Chinese experts noted.
“The Indian government’s protectionism poses numerous risks and challenges to the country’s ambitious plans of becoming a major manufacturing hub,” Qian Feng, director of the research department at the National Strategy Institute at Tsinghua University, told the Global Times on Sunday.
“In the long run, it is likely to lead to regret as it deviates from standard commercial principles,” Qian said.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
