India, July 3 -- A Chinese company that makes Apple's iPhones in India has asked hundreds of its Chinese engineers and technicians to return home from the factories. This move by the firm, Foxconn Technology Group, is being seen as a significant blow to Apple's manufacturing push in India.

More than 300 Chinese workers have left already, and now mostly support staff from Taiwan remain in India, the news agency Bloomberg reported. The move began about two months ago, but it's not yet clear why, the report said, citing sources who asked not to be named as the information is private.

But it suggests a link between this return-home move with the Chinese government urging its regulatory agencies and local administrations to curb technology t...