Apple’s key supplier Foxconn’s plan to produce iPhones in India has been blocked by China.

Foxconn’s plan to expand operations in India for iPhone production has been thwarted by China’s restrictions on technology and talent exports. According to Financial Times, Chinese officials have made it difficult for engineers and essential production equipment to leave the country. Foxconn announced last month that its fourth-quarter earnings had reached a record high, with a 15.17% increase compared to the previous year and a 15.03% increase from the previous quarter. Analysts have likened Beijing’s strategy to restrictions on technology transfer in Western countries.

China’s Ministry of Commerce had called for new export restrictions on technologies related to lithium and advanced battery materials. While China’s informal controls target India, projects in Southeast Asia and the Middle East are said to be largely unaffected. Experts have noted that the restrictions are part of China’s strategy to maintain critical technologies against the US and EU.