Treat Chinese Companies Fairly, Beijing Urges India After Xiaomi Threat

A man uses his mobile phone in front of a screen displaying a Xiaomi logo during the Mi Note launch ceremony in Beijing, photo taken Jan. 15, 2015. REUTERS/Jason Lee

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NEW DELHI/BEIJING, May 9 (Reuters) – China on Monday urged India to ensure that Chinese companies operating in India are not discriminated against, after Xiaomi Corp (1810.HK) said its executives there said during interrogations were threatened with violence for alleged illegal transfers.

Reuters reported on Saturday that Xiaomi, the largest smartphone seller in India, had outlined the alleged threat from officials of the Indian Enforcement Directorate – which tackles financial crime – in an application to an Indian court.

The board called the allegations false. read more

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In late April, it seized $725 million in Xiaomi’s Indian bank accounts for making illegal transfers abroad “under the guise of” royalty payments. read more

Xiaomi denies wrongdoing and says all its royalty payments are legitimate. read more

A spokesman for China’s foreign ministry, when asked about Xiaomi’s lawsuit, said Beijing was resolutely upholding the rights and interests of Chinese companies.

“China hopes that India will provide a fair, equitable and non-discriminatory business environment for Chinese companies with investments and operations in India, conduct investigations in accordance with the law and increase the confidence of international investors,” spokesman Zhao Lijian said on a statement. press conference in India. Beijing.

Neither the Enforcement Directorate nor spokespersons for the Indian government or Xiaomi, which has a 24% share of the Chinese smartphone market and about 1,500 employees there, immediately responded to requests from Reuters for comment.

Many Chinese companies have struggled to do business in India since a clash between soldiers at the country’s border in 2020. India has raised security concerns by banning more than 300 Chinese apps — including TikTok — and has raised the standards for Chinese companies investing in India tightened .

An Indian court last week suspended the directorate’s action against Xiaomi’s accounts pending a hearing on May 12.

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Reporting by Aditya Kalra in New Delhi and Eduardo Baptista in Beijing; Additional reporting by Abhirup Roy; Editing by Ed Osmond and John Stonestreet

Our Standards: The Thomson Reuters Trust Principles.

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