China cannot digest Tim Cook’s Apple plans for India, triggers debate

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China cannot digest Tim Cook’s Apple plans for India, triggers debateApple CEO Tim Cook’s India visit has rubbed China in a wrong way. The Chinese media reported that Beijing is quite upset with Cook’s plan to ‘Make in India’.
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Cook, who was in India last week, met Indian PM Narendra Modi and explored plans to manufacture in India.

"Cook shared Apple Inc's future plans for India. He spoke of the possibilities of manufacturing and retailing in India. He appreciated the breadth of young talent in India and said the youth have significant skills which Apple would like to tap," an official statement had said.

China has become apprehensive of Apple’s plans for India as they mull that this could lead to possible exodus of Apple production chain and loss of tens of thousands of jobs.

READ ALSO: Tim Cook's first visit to India was an exploratory mission, no clear-cut investment agenda

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"Cook's words have prompted a heated discussion in China. Wage increase have apparently eroded China's labour competitiveness, resulting in the departure of a number of manufacturing businesses. Now people are wondering if Apple will be the next one," the Global Times said.

Apple's decision could affect the jobs of tens of thousands of Chinese workers. However, a see-saw battle between China and India over the technology giant is not the only solution, it said.

READ ALSO: Narendra Modi mobile app gets an updated version, thanks to Tim Cook

It is natural that Apple would want to move its manufacturing base from China to another Asian nation to lower production costs. In fact, before Cook's words, some major Apple suppliers such as Foxconn had already announced plans to expand their business in India," the report said.

China may need to promote the development of more local manufacturers and encourage them to move to less-developed central and western regions where labour costs are lower, it said.

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"Several factors are to blame for the slow manufacturing transfer from coastal regions to inland areas. Although a large amount of money has been allocated to boost development in western China in recent years by accelerating infrastructure construction, the environment for business development in the region is still lagging behind," it said.

(Image: PIB)