Chinese smartphone and electronics manufacturers are undertaking a significant strategic shift, moving beyond their traditional focus on India's domestic market to become major exporters from the country. Driven by consistent encouragement from the Indian government and a robust growth in local production capabilities, these companies have begun shipping products from India to global markets, including West Asia, Africa, and the United States—regions historically supplied by China and Vietnam. This development marks a substantial victory for India's 'Make in India' initiative.

This strategic redirection is a direct consequence of heightened governmental oversight on Chinese enterprises following the 2020 border disputes between the two nations. Through informal yet clear channels, Chinese organizations have received guidance to deepen their roots in India. This includes establishing local manufacturing units, often through Indian partnerships, developing locally-owned distribution networks, actively pursuing export opportunities, and appointing Indian nationals to senior management positions and corporate boards. While the appointment of Indian nationals to top leadership roles like managing director or chief executive has yet to materialize in Chinese companies operating in India, the overall push towards localization and export is evident.

Several prominent Chinese brands have already demonstrated tangible progress in their export endeavors. Oppo Mobiles India, for instance, reported its first foreign exchange earnings totaling ₹272 crore in FY24 through exports. Similarly, Realme Mobile Telecommunications (India) generated ₹114 crore from its export activities in the same fiscal year, according to their regulatory submissions. The full financial statements for FY25 from these organizations are still awaited, but early indications are positive.

The commitment to exports extends beyond smartphones to a broader range of electronics. Hisense Group, a major Chinese television and home appliances brand, is poised to commence exports of its locally manufactured products to West Asia and Africa in early 2024. Ajay Singhania, managing director of Hisense’s local manufacturing associate, Epack Durable, highlighted plans for a new ₹100-crore facility in Sri City, which will specifically incorporate export operations and replicate designs from Hisense's China establishment. Lenovo Group has also articulated plans to export servers and laptops from India, while its subsidiary Motorola is already actively exporting devices to the US market.

Indian third-party manufacturers are playing a crucial role in facilitating these export ambitions. Dixon Technologies, a key manufacturing partner for Motorola, is significantly increasing its production capacity by 50% to meet the burgeoning export demands. Furthermore, Dixon Technologies produces smartphones for Transsion Holdings, the Chinese conglomerate behind Itel, Tecno, and Infinix brands, which has successfully initiated exports to various African markets. Haier, another significant consumer electronics and appliances manufacturer, is reportedly investigating its own export possibilities from India. While many smartphone manufacturers, including Oppo, Vivo, Realme, OnePlus, and Xiaomi, are collaborating with Indian enterprises and have initiated exports, it's worth noting that RoC filings for Xiaomi, Midea, and OnePlus in FY24 did not yet indicate foreign exchange earnings from exports, suggesting varying stages of export maturity.

India's Production-Linked Incentive (PLI) scheme provides significant support to these export initiatives. Although Chinese brands generally do not directly participate in the PLI scheme, their Indian manufacturing partners, such as Dixon Technologies, are beneficiaries, thereby indirectly supporting the export ecosystem. Industry officials confirm that the Indian government has consistently urged Chinese companies to export from India, with expectations that remaining Chinese brands will soon follow suit. The drive for supply chain diversification has become paramount amidst escalating geopolitical tensions and potential US tariff implications, making India an attractive export base.

The prospect of Chinese firms exporting phones and electronic devices to the US from India remains contingent upon the outcomes of ongoing US trade discussions with both India and China. Currently, Dixon facilities are instrumental in manufacturing Motorola smartphones specifically for Lenovo's US exports. This broader trend contributes to India's burgeoning electronics export sector; in FY25, smartphones emerged as India's primary export commodity, with overseas shipments soaring by 55% year-on-year to reach $24.14 billion. While Apple dominated these figures with iPhone exports exceeding $17.4 billion, and Samsung contributed the remainder, the entry and expansion of Chinese manufacturers into this export landscape signify a dynamic shift in global electronics supply chains.