Chinese smartphone manufacturers intend to establish manufacturing plants in Egypt, Indonesia, Bangladesh, and Nigeria

According to a Global Times report, Chinese smartphone brands are planning to set up production plants in countries such as Egypt, Indonesia, Bangladesh, and Nigeria, despite India’s rapidly increasing cracking down on Chinese companies. According to the report, which mentioned a Chinese executive based in India, said that companies will consider bilateral ties, market potential, preferential policies, and labor costs when deciding where to locate manufacturing plants. OPPO plans to build a $20 million mobile phone factory in Egypt.

“OPPO’s memorandum of cooperation with the Egyptian government to establish a $20 million smartphone infrastructure may set a precedent,” said the Chinese executive to Global Times. According to a statement issued by Egypt’s Council of Ministers, the OPPO plant’s annual production capacity is expected to reach 4.5 million units. Over the next three to five years, the investment will help to create 900 new job opportunities.

Over the years, India has tightened its grip on Chinese firms. The Indian government is investigating allegations of evading taxes by three Chinese mobile companies: OPPO, Vivo India, and Xiaomi. The Directorate of Revenue Intelligence (DRI) issued a notice to the companies for tax evasion. In addition, India has banned over 300 Chinese apps, which include Tencent’s WeChat and ByteDance’s TikTok. The country is currently expanding its domestic smartphone and chip manufacturing industries.