Foxconn Technology Group has asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, dealing a blow to Apple Inc.’s manufacturing push in the South Asian country.

Apple’s biggest assembly partner, Foxconn, has ordered more than 300 of its Chinese employees to return home from its iPhone factories in India, Bloomberg reported, citing anonymous sources.

The move comes months after officials in Beijing verbally encouraged regulatory agencies and local governments to limit technology transfers and export of equipment to India and Southeast Asia