India seizes $725 million from Chinese Xiaomi's accounts

The Indian subsidiary of smartphone giant Xiaomi allegedly broke foreign exchange laws and paid out $725 million in royalties to three foreign-based entities.

© AP - Vincent Yu摄影

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India suspects Chinese smartphone giant Xiaomi of illegally transferring money to China and seizes $725 million from the Chinese company's accounts.

All in a context of economic tensions between the two countries.

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The Indian subsidiary of smartphone giant Xiaomi allegedly broke foreign exchange laws and paid out $725 million in royalties to three foreign-based entities.

For the Indian financial authorities, which had opened an investigation last February, it is the Chinese parent company which would have orchestrated these illegal exchanges.

Charges vigorously denied by the smartphone manufacturer, established in the country since 2014. On New Delhi television, he said he complied with local laws and made legitimate payments.

Before adding that the misunderstanding would quickly be clarified with the authorities.

Relations at rock bottom between the two countries

But nothing is less certain, because even if China is one of India's leading trading partners, as evidenced by the $125 billion in bilateral trade last year,

are at an all-time low .

for two years.

Especially with the tensions on the Himalayan border.

This seizure of several hundred million dollars follows a search of Xiaomi's Indian offices last December.

Searches which have not escaped the other Chinese phone manufacturers, including the

.

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