China Weaponizes Workforce: 300 Engineers Pulled from India's Apple Factories in Strategic Move

News agencies have reported that Chinese employees have been asked to return from India's Apple factories, marking a significant development in the tech giant's efforts to diversify its manufacturing base.

This recall, affecting over 300 workers, coincides with escalating India-China geopolitical tensions and China's recent export restrictions on rare earths and capital equipment, potentially disrupting technology transfer and iPhone production in India. The move underscores the challenges Apple faces as it seeks to reduce its reliance on China through its key contract manufacturing partners.

Apple's manufacturing expansion in India has been a cornerstone of its strategy, driven by supply chain disruptions during the COVID-19 pandemic and U.S.-China trade tensions.

By 2024, India accounted for over 10% of global iPhone production, with projections estimating a rise to 25% by 2027, according to industry sources. Leading this effort are contract manufacturers Foxconn, Wistron, and Pegatron, with Foxconn operating large assembly plants in Tamil Nadu.

A notable development came with Pegatron's recent sale of a 60% stake in its Indian unit to Tata Electronics, with financial terms undisclosed, as reported by TechCrunch, signaling Tata's growing role and Apple's push to localize production while leveraging India's skilled workforce.

The recall of Chinese employees, detailed by 9to5mac, suggests possible interference by the Chinese government to retain critical technological expertise, a tactic consistent with China's history of using rare earth controls as economic leverage.

Foxconn's shift to replace Chinese staff with Taiwanese personnel, as reported by Rest of World in 2025, further highlights efforts to navigate these tensions. This could impede the transfer of manufacturing know-how to Indian workers, a key element of Apple's diversification plan.

While Apple's commitment to India remains firm, bolstered by government incentives and a burgeoning electronics ecosystem. However, the success of this strategic pivot hinges on overcoming technological dependencies and geopolitical hurdles. The employee recall serves as a stark reminder of the intricate balance Apple must maintain between global supply chains and national interests in an increasingly fragmented economic landscape.