As Chinese telecom giant Huawei starts manufacturing smart phones in India, Beijing needs to worry about job losses due to this shift. Although foreign direct investment from China constitutes 2.2 percent of the $39.3 billion in 2015, the shift is still significant. India is a very large market for mobile phones and Chinese companies, with their low-cost but high value phones have been making a mark in the domestic market. As assembly lines shift to India, China will begin to feel the pinch. India is growing at the rate of over seven percent and foreign companies want a slice of this pie. The ease of doing business in India is not up where it should be and the myriad of labour and employment laws make it difficult for foreign companies to set up shop. Then there are issues of land acquisition, protests by locals, red tape and corruption, but in a global economy, there is bound to be movement of assembly lines to the cheapest destination or closer to the market. Success lies in remaining competitive at all times.
