China’s business in India responds to active steps and contingency including risk management after Chinese Xiaomi cellphone makers are under the investigation of the Indian government for foreign exchange issues reported, which industry analyst is said to be a new step that is worth noting by India.
Meanwhile is the public expectation on both parties to ease bilateral tensions after a meeting of high-level government officials in March, Xiaomi’s probe contradicts trends, people said in the industry, urging Indian authorities to treat Chinese cellphone companies at the level of land playing.
Indian federal financial battle battles have summoned former Xiaomi India’s head in an investigation whether the company’s business practices match the Indian foreign exchange law, Reuters reported on Tuesday, citing unknown sources.
In response to the probe, Xiaomi’s spokesman said in a statement sent to Global Times Wednesday that “Xiaomi is a law-abiding and responsible company. We provide the most important for land laws. We fully correspond to all. Regulations and sure of things the same one. “
Xiaomi works with Indian authorities with investigations to ensure they have all the information needed, said the company.
The latest investigation is a follow-up of a major probe that targets Chinese companies last year, a clear indication that the government’s investigation continues, which Shucheng, Secretary General with the Indian Enterprise Phone Phone Association, an industrial body representing the Chinese cellphone industry in India, told The Global Times on Wednesday.
“Last year, around 80 percent of Chinese companies in India were being investigated, and most companies ended it after paying margins,” said.
Insider Industry said that the probe not only targeted Xiaomi but many other Chinese companies with operations in India. In response to probes, contingency steps are being considered by Chinese business in India.
To further ensure a smooth business operation in India, which urges Chinese-funded companies in India to get acquainted with Indian tax laws, especially in aspects of imported materials, complete machine assembly, sales, and deletion.
Harris Liu from the Chinese Chamber of Commerce in India told The Global Times on Wednesday that the room promoted the prevention of risk, control and self-examination and self-correction for Chinese-funded companies in India.
The latest step involving Xiaomi does not benefit every side, given the fact that Xiaomi is the main representative of China’s investment in India, which contributes to local work, experts said.
“The Indian government has started a unfriendly policy that targets Chinese companies, especially cellphone manufacturers, last year with additional rates and other obstacles, in an effort to encourage Chinese companies out of the Indian market,” Liu Zongyi, Secretary General of the Research Center for Cooperation China-South Asia in the Shanghai Institutes for International Studies, told The Global Times on Wednesday.
But such a step can damage the industry itself too, given the participation and high contribution of Chinese cellular companies to the Indian market, said Liu.
Among the top five in terms of shipping in the Indian smartphone market, the Chinese brand contributed four – Xiaomi, Redmi, Oppo and Vivo.
Xiaomi was ranked first on the Indian market with a 24 percent share of 2021 in sending smartphones, and Vivo was ranked third with a market share of 15 percent, according to data released by rival research.
The hope of reducing tensions emerged after the visit of the Chinese Council and Foreign Minister Wang Yi to India in March, an encouraging step that has been recognized by the Chinese industry representative group in India.
Apart from the recent incident, there was no other investigation of Chinese companies this year, said insiders.
That said that, to support the normal operation of a Chinese-funded company in India, a visa for Chinese-funded company employees is still normally released.
“Although restrictions are not fully lifted, the success rate of visa applications for Chinese company employees to India has reached 60 percent since the beginning of 2022 compared to only 10-20 percent in the same period in 2021,” said.
“We hope that India will treat foreign investors evenly, and create an open, fair, and non-discriminatory business environment for all companies in India,” said that.
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