India's "Pig Butchering" Game: Apple and Foxconn Flee, Can Vietnam Take Over?

India's "Pig Butchering" Game: Apple and Foxconn Flee, Can Vietnam Take Over?Foxconn's "Escape": Indian Dream Shattered, Return to China is RealIndia's "Money-Making" Methods: Using "Pig Butchering" to Force Companies to SubmitIn 2023, the Indian government arrested three executives of Vivo under the pretext of "money laundering." The aim was to force Vivo to agree to a 51% acquisition by the Tata Group and transfer its confidential technology

India's "Pig Butchering" Game: Apple and Foxconn Flee, Can Vietnam Take Over?

India's "pig butchering" game against foreign companies is world-renowned. In recent years, many companies have suffered huge losses due to the Indian government's "extortion." Foxconn just invested 1 billion yuan back in China, and then India "moved" on Apple. India has "accused" Apple of violating anti-monopoly laws. What exactly happened? Is India finally going to use the "pig butchering" game on Apple?

Foxconn's "Escape": Indian Dream Shattered, Return to China is Real

Foxconn, the famous contract manufacturer, had invested nearly $20 billion in building factories in India. On the surface, India's low labor costs are indeed attractive. However, the reality is different. The output rate of Apple parts at Indian factories is only 50%, and the work abilities of Indian workers are far lower than their domestic counterparts. Foxconn eventually realized the advantages of its home country and signed a 1 billion yuan investment agreement in July to build a new headquarters in Zhengzhou.

Apple's "Dilemma": Indian Market Dream Shattered, China is the "True Love"

Apple has always regarded India as an important growth market, hoping to use it to fill the gap in revenue decline from the Chinese market. However, high import tariffs and policy risks from the Indian government have forced Apple to reconsider its layout in India. Foxconn's insufficient production capacity and low yield in India have not only affected Foxconn's profits but also negatively impacted Apple's reputation.

India's recent report accusing Apple of violating local competition laws has further plunged Apple into a dilemma. The report not only accuses Apple of violating anti-monopoly laws but also includes Apple's commercial secrets and sends them to Apple's competitors. The real purpose of the Indian government's actions is to force Apple to use their purchasing system and charge a 30% fee.

India's "Money-Making" Methods: Using "Pig Butchering" to Force Companies to Submit

The Indian government's "pig butchering" behavior against foreign companies is not an isolated incident. In 2022, the Indian government directly froze Xiaomi's 4.8 billion yuan funds under the pretext of "illegal transfer of funds abroad" and demanded that Xiaomi pay a fine of 550 million yuan. Xiaomi was forced to lay off 500 employees.

In 2023, the Indian government arrested three executives of Vivo under the pretext of "money laundering." The aim was to force Vivo to agree to a 51% acquisition by the Tata Group and transfer its confidential technology. The Tata Group had previously acquired Apple's main partner companies. If it succeeds in acquiring Vivo, it will completely control the Indian mobile phone industry.

These actions by the Indian government have seriously damaged its international reputation. More and more companies are choosing to abandon India and seek other investment destinations.

Can Vietnam Take Over? Opportunities and Challenges Coexist

Vietnam is the third largest country in Southeast Asia, with cheap labor and mature electronic product production capabilities. The Vietnamese government has also offered more favorable treatment to foreign investors. However, Vietnam's infrastructure is lagging, with low power supply and transportation efficiency, which also poses risks for companies.

Samsung has already built factories in Vietnam, and it has experienced the challenges firsthand. In comparison, China has a more complete industrial manufacturing system, higher efficiency, and more guaranteed quality.

Conclusion

In the context of globalization, diversified development is the future. The Indian government's "pig butchering" game will only make companies lose confidence in them, ultimately harming their own interests. Apple and Foxconn have fled, and whether Vietnam can take over remains to be seen.

Word Count: 3274

Disclaimer: The content of this article is sourced from the internet. The copyright of the text, images, and other materials belongs to the original author. The platform reprints the materials for the purpose of conveying more information. The content of the article is for reference and learning only, and should not be used for commercial purposes. If it infringes on your legitimate rights and interests, please contact us promptly and we will handle it as soon as possible! We respect copyright and are committed to protecting it. Thank you for sharing.(Email:[email protected])