Three Chinese mobile phone manufacturers (OPPO, Vivo India, and Xiaomi) are being investigated by the Indian government for possible tax cheating.
Global Times reports that as a result of India's tightening restrictions on Chinese firms, Chinese smartphone makers are looking to establish factories in other nations such as Egypt, Indonesia, Bangladesh, and Nigeria.
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The article stated that businesses would consider factors such as bilateral connections, market potential, favourable policies, and labour costs before deciding where to locate their factories. The assertion was based on an interview with a Chinese executive living in India.
There will soon be an OPPO factory in Egypt, costing a cool $20 million to establish up.
"OPPO's memorandum of understanding with the Egyptian government to set up a $20 million smartphone facility may be a pacesetter," the Chinese executive told Global Times.
This Monday, the Egyptian Ministerial Council released a statement saying that the OPPO plant's yearly manufacturing capacity will be increased to 4.5 million units.
In the next three to five years, the investment will help generate about 900 new employment possibilities.
"The management in Chinese smartphone brands in India felt a palpable sense of being squeezed by the Indian government's crackdown and its (protectionist) actions to improve domestic companies' capability to make sophisticated electronics such as smartphones," the executive was quoted as saying.
Over the years, India's crackdown on Chinese businesses has intensified.
Three Chinese mobile phone manufacturers (OPPO, Vivo India, and Xiaomi) are being investigated by the Indian government for possible tax cheating.
The businesses were notified by the Directorate of Revenue Intelligence (DRI) that they had violated duty laws.
More than 300 Chinese applications, including WeChat (developed by Tencent) and TikTok (developed by ByteDance), have been banned in India.
At now, efforts are being made to increase production of domestically made smartphones and computer chips.
The state government of Gujarat has teamed up with Vedanta and Foxconn to spend Rs 1.54 lakh crore and become self-sufficient in semiconductor production.
It has been claimed that Tata Group is in negotiations with Wistron, a company located in Taiwan, to increase iPhone manufacturing capacity in the nation by a factor of 500.
(With Inputs from IANS)
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