Leading Chinese firms like Vivo, Oppo and Xiaomi have agreed to export devices made in India to countries all over the world, giving away a portion of crucial manufacturing output from their Chinese factories. This is a significant victory for the government's efforts to make India a global manufacturing hub for electronics and smartphones.
When Chinese businesses export smartphones made in India, their manufacturing strategy will likely change since they will have to share their global production volumes with India for the first time and open up their global markets, something they have resolutely refused to do up until now. Sources said that all the three top Chinese makers have now finalised elaborate plans to begin exports from India - mirroring the steps taken by American giant Apple and Korean Samsung - and potential overseas markets could be in Africa, the Middle East, Latin America and even Europe, apart from neighbouring countries.
The government's decision to slow or stop investments from China in response to the Covid-19 outbreak and the unrest in Ladakh coincides with the policy adjustment. Chinese investments are no longer eligible for FDI's automatic approval process, and some companies are experiencing delays with their certifications. Additionally, Chinese telecom firms are not on the preferred supplier list, and several of them are under tax audits.