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Report: Chinese mobile companies may set up factories in other countries due to strict measures launched by India

Chinese mobile phone companies may leave India to set up factories in other countries due to increased repression, according to a report by Global Times.

“Chinese smartphone brands are also looking at Indonesia, Bangladesh and Nigeria as an alternative to India,” the report claimed, quoting a Chinese executive based in India.

“Management at Chinese smartphone brands in India felt a palpable sense of being pressured by the Indian government’s crackdown [protectionist] Measures to improve the ability of local companies to make advanced electronics such as smart phones.”

The report cited a recent deal by mobile phone company OPPO with the Egyptian government to build a $20 million factory there. The report said the deal could herald an exit of Chinese companies from India.

“OPPO’s memorandum of understanding with the Egyptian government to establish a $20 million smartphone facility may be groundbreaking,” the Chinese executive told Global Times.

India has stepped up its crackdown on Chinese companies over the years.

The Indian government is looking into cases of alleged tax evasion by three Chinese mobile companies – OPPO, Vivo India and Xiaomi.

Companies have been given notices by the Directorate of Revenue Intelligence (DRI) to evade service.

India has also banned more than 300 Chinese apps, including WeChat from Tencent and TikTok from ByteDance.

The country is now boosting its domestic smartphone and chip manufacturing sector.

Gujarat government has partnered with Vedanta and Foxconn with an aim to invest Rs 1.54 crore to achieve self-reliance in semiconductor manufacturing business.

Tata Group is also reported to be in talks with Taiwan-based Wistron to increase iPhone production capacity by 500 percent in the country.

With IANS input