This is CBSI on the World. I'm John Baps with my colleague and friend Gordon Chang at

Gordon G. Chang. And we go to Fraser Howe, the co-author of Red Capitalism, to understand

report recently from Europe, London reporting, FT. Apple's effort to pull some of its eggs

out of the China basket is showing signs of success. Tata Group, India's largest conglomerate,

is said to be close to an agreement to acquire an Apple supplier's factory as soon as August.

Marking the first time a local company would move into the assembly of iPhones, a takeover of

the Wistron Corp factory in southern Karnataka state, potentially valued at more than 600 million,

would cap about a year of negotiations. Fraser, a very good day to you, supply chain,

is this moving the supply chain in a way that is warranted and sensible, or is it a show of what can

happen? Apple is a big story in China and it can be a big story in India, is this the beginning?

Good evening to you. Hello, Gordon. Hello, John. It's certainly what marks a major sort of early

signposts that were there's been talked about for a long time. This idea of shifting production from

China, a country with lots of effectively cheap workers to India, another country with lots of

cheap workers, but a country which is much earlier in the economic cycle and doesn't have the same

population as China. So this is certainly significant move. Apple is obviously looking to build its

India business. As I say, India is a growing economy, so now the world's most populous nation,

so they're looking at simply selling a lot of stuff there. They're also looking at manufacturing

stuff there and of course they're looking to reduce some degree of dependency and bottle neck on

China. That is a story that's been ongoing for a number of years, do you coupling the risking

Covid lockdowns, whatever it may be, China is simply not the place you want to be as you once were.

Another headline before we look further into the Chinese economy, why China's woes are

boosting other markets. This is financial, if this is the Wall Street Journal itself.

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