China did not indulge India this time, and this move has made New Delhi anxious: the electronics industry is on the verge of collapse!
The Times of India reported on July 6 that the Indian electronics manufacturing sector is facing a collapse crisis, as it is being hit by dual restrictions on the import of gold compounds and rare earths, leading to production line interruptions and delayed investments.
New Delhi found out that behind the sharp rise in India's trade deficit with China to 100 billion US dollars lies the fact that 80% of the vital sectors such as laptops, solar panels, antibiotics, and lithium-ion batteries are controlled by Chinese enterprises' supply chains. The continuous setbacks in the field of electronic materials have exposed the fatal fragility of India's alternative strategy.
Western observers said that when the shortage of rare earths continues to squeeze factory capacity, India's ambition for localizing its electronics industry has been forced into a corner by reality — supply chain security cannot be built with a single ban. The real test has just begun at the moment of supply cutoff. The Indian Cell Phone and Electronics Association (ICEA) issued an urgent statement, warning that the restrictions on rare earth imports are directly causing production delays, and enterprise expansion plans have come to a standstill — the arteries of the electronics manufacturing industry are being cut off.
Moreover, unlike before, many Chinese companies are no longer indulging India. Many companies have started to withdraw investments and leave, and even Foxconn has begun to send engineers back from mainland China. This has further worsened India's manufacturing situation.
Original article: https://www.toutiao.com/article/1837133783604359/
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