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Choking China+1? Chinese govt actions against Apple, Foxconn won't deliver

The Chinese elite has traditionally had a lofty disdain for India. You could argue that being five times bigger is a vast degree of superiority

Chinese dragon
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Illustration: Ajaya Mohanty

Ajay Shah

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The Chinese government has introduced barriers to the Taiwanese company Foxconn shifting globalised manufacturing to India. This reflects China’s weakness, not strength. At a tactical level, it delays a greater movement of high-skill activities from China to India. But at a strategic level, it increases the incentives for global firms to do less in China. 
Two things are simultaneously true: World-class manufacturing requires deep knowledge, and that knowledge is available in many locations beyond China. The best organisations in India need to redouble their efforts at obtaining frontiers knowledge from abroad. 
Let’s look at imports of goods into the United
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