CCB Beijing, May 2 news On May 1, Xiaomi responded to the fact that "about 4.8 billion yuan in assets was seized by India", saying, "All operations of Xiaomi India strictly abide by local laws and regulations. We have carefully studied the authorities. Order. We believe that the royalties and bills we pay to the bank are legitimate and genuine.”
According to foreign media sources quoted by the media, the Indian side said that Xiaomi and its subsidiaries were suspected of illegally sending money to foreign entities in violation of India’s local Foreign Exchange Management Act, and have seized the belongings of Xiaomi Technology India Private Limited (hereinafter referred to as “Xiaomi India”). About 4.8 billion yuan in assets.
In this regard, Xiaomi said: "All operations of Xiaomi India strictly abide by local laws and regulations. We have carefully studied the orders of the authorities. We believe that the royalties and bills we pay to the bank are legal and genuine. Xiaomi These royalties paid by Indian companies are for the licensed technology and intellectual property used in our Indian version products. For Xiaomi India, paying such royalties is a legitimate business practice. Of course, we will work closely with the government to Clear up any misunderstandings."
It is worth mentioning that in January this year, some media reported that the Indian tax department conducted a large-scale in-house tax audit on Chinese companies in India.
On February 17, at the regular press conference of the Ministry of Commerce, some media mentioned that the Indian Ministry of Electronics and Information Technology issued a ban on 54 APPs on the grounds of "security threats" on the 14th, most of which are products of Chinese companies, and On the 15th, the Indian tax department conducted searches on several premises of some Chinese-funded enterprises in India.
Gao Feng, a spokesman for the Chinese Ministry of Commerce, said that for some time, the relevant Indian authorities have taken a series of measures to suppress Chinese companies and related products in India, which have seriously damaged the legitimate rights and interests of Chinese companies. China expresses serious concern about this.
Gao Feng pointed out that China has noticed that foreign investors, including Chinese companies, are increasingly concerned about the investment environment in India.
Foreign investors have created a large number of local employment opportunities in India and made positive contributions to India's economic development.
It is hoped that the Indian side will improve the business environment and treat all foreign investors including Chinese companies in a fair, transparent and non-discriminatory manner.
According to the report on smartphone shipments in the Indian market in the first quarter of 2022 released by market research firm Canalys, Xiaomi topped the list with shipments of 8 million smartphones, with a market share of 21%.
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