Treat Chinese companies fairly, Beijing urges India after Xiaomi threat allegation

A man uses his mobile phone in front of a screen displaying a Xiaomi logo during the Mi Note launch ceremony in Beijing, picture taken January 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 that its leaders had been threatened with violence during interrogation on allegations of illegal activities. remittances.

Reuters reported on Saturday that Xiaomi, India’s biggest smartphone vendor, described the alleged threat from officials of India’s Law Enforcement Directorate – which tackles financial crime – in a filing with an Indian court.

Management called the allegations false. Read more

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In late April, he seized $725 million from Xiaomi’s Indian bank accounts, claiming the company had sent illegal remittances abroad “under cover” of royalty payments. Read more

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

A Chinese Foreign Ministry spokesperson, when asked about Xiaomi’s court case, said Beijing is resolutely defending the rights and interests of Chinese companies.

“China hopes India will provide a fair, just and non-discriminatory business environment for Chinese companies with investments and operations in India, conduct investigations in accordance with law and build confidence among international investors,” said the door. -spoken Zhao Lijian during a press briefing in Beijing.

Neither the Law Enforcement Branch nor spokespersons for the Indian government or Xiaomi, which has 24% of China’s smartphone market and around 1,500 employees there, immediately responded to requests for comment. from Reuters.

Many Chinese companies have struggled to do business in India since a clash between soldiers on the countries’ border in 2020. India has cited security concerns by banning more than 300 Chinese apps since then – including TikTok – and by tightening standards for Chinese companies investing in India.

Last week, an Indian court suspended the Branch’s decision 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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