Foxconn Imports Disrupted by India-China Tensions

Foxconn factory

Imports to India by key Apple supplier Foxconn have been slowed as a result of escalating tensions between the country and China. Reuters reported that Apple is amongst the companies seeking to free its shipments.

Customs officers at Indian ports have held back shipments from China and sought additional clearances after deadly clashes at the disputed Himalayan border last month. The checks have been imposed without any formal order. While several companies such as Apple (AAPL.O) and Dell (DELL.N) have been battling to free stuck shipments, hundreds of employees at Taiwanese contract manufacturer Foxconn’s two plants in the south had no major work to do this week as shipments were delayed, sources said.

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One thought on “Foxconn Imports Disrupted by India-China Tensions

  • I assume the shipments you refer too are component parts from Chinese suppliers needed to assemble iPhones at Foxconn facilities within Indian borders (Southern India) for the Indian market, correct?

    It is very common for India to lock-down imports of components or finished products at customs at the border. China is known for doing the same thing as well. Since the Foxconn locations within India were established to manufacture iPhones to satisfy the regulatory requirements of India, both Apple and Foxconn should be able to clear customs to satisfy the Indian “In Country” manufacturing requirement.

    Many manufacturers have dollar signs in theirs eyes for both the Chinese and Indian markets. In reality the regulatory requirements for both are purposely burdensome to discourage outside importation of product.

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