08/06 2024
437
Chinese mobile phone companies have been repeatedly harassed in India, and some experts have suggested that Chinese companies simply abandon the Indian market. This is actually a rather ignorant statement, as the importance of the Indian market to China far exceeds expectations. The efforts of Chinese mobile phone companies in the Indian market have made a significant contribution to Made in China.
Data from 2023 shows that China's trade surplus from the Indian market reached $85 billion, while China's overall trade surplus for the year was $264 billion. The trade surplus contributed by India accounted for more than one-third of China's total, making it a strong support for Made in China.
Chinese mobile phones are representative products that have achieved great success for Made in China in India. In 2023, the top four Chinese mobile phone brands sold over 84 million units in the Indian market, accounting for nearly 60% of the market share, demonstrating their strong position in the Indian market.
Even though these mobile phone companies have established factories in India, these factories are primarily engaged in mobile phone assembly, with components still shipped from China. This drives exports from Made in China to India and contributes to the continuous growth of such exports.
Even for companies like Apple, which has pushed Foxconn, Wistron, and other contract manufacturers to set up factories in India to produce iPhones, the components for these iPhones still need to be shipped from China, similarly boosting exports from Made in China and increasing India's trade deficit.
Faced with this situation, India has attempted to hinder the development of Chinese mobile phones in the Indian market through various means, causing significant difficulties for Chinese mobile phone companies. However, these efforts have not prevented Chinese mobile phones from gaining a dominant market share in India. Even when one Chinese mobile phone brand experienced a significant decline last year, it has regained its position in the Indian market this year.
The reason Chinese mobile phones have achieved dominance lies in the solid mobile phone industry chain in China. India also aims to develop its own mobile phone brands, but several years ago, it was discovered that the dominant Indian mobile phone brands were actually assembled in Shenzhen, China. The lack of an industry chain in India prevents the cultivation of local mobile phone brands, leading to their swift defeat by Chinese mobile phone brands.
Now, India has deeply recognized the importance of the industry chain. However, the experiences of Chinese mobile phone companies and contract manufacturers like Wistron, who faced forced acquisitions in India, have raised concerns among Chinese mobile phone industry chain enterprises about setting up factories there. As a result, India's mobile phone industry chain has struggled to develop. Naturally, suppressed Chinese mobile phone brands are even less willing to drive the development of the industry chain in India, hindering the growth of Made in India.
This situation exists in other manufacturing industries as well. The reputation of India as a 'graveyard for foreign investment' is well-known, resulting in the cost of Made in India being much higher than anticipated. Nevertheless, this has not deterred Chinese companies from tapping into the Indian market. Chinese mobile phones, which have achieved great success, continue to dominate the Indian market.
Today, it is not as easy for Made in China to go global as it once was. Under such circumstances, the Indian market, which can provide a trade surplus of over $80 billion, cannot be easily abandoned. The contributions made by Chinese companies striving in India to Made in China deserve recognition, while those who make reckless comments lack understanding of Made in China.