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Xiaomi Row: Stop Regulatory Assault On Companies, Tells Chinese Media To India

New Delhi: After smartphone maker Xiaomi Corp alleged threats of “physical violence” in Indian investigations, state-backed Chinese daily Global Times said India should stop its “regulatory assault” on Chinese enterprises.

Xiaomi informed an Indian court on Saturday that its senior executives were threatened and coerced during questioning by an Indian agency probing illegal remittances, according to Reuters. The allegations were labeled “untrue and unsubstantiated” by the Enforcement Directorate.

In an opinion article published late Sunday, the Global Times cited the report, saying that the ambiguity surrounding Xiaomi’s “regulatory predicament should raise a red signal for India” and urging New Delhi to end its “regulatory onslaught on Chinese enterprises.”

“The impression that Chinese and other foreign companies could be intentionally targeted and suppressed isn’t something good or favourable for India,” it said.

“It is of great importance for India to maintain normal and effective communication and coordination with Chinese investors.”

Due to tensions following a border skirmish in 2020, several Chinese companies have struggled to do business in India. Since then, India has banned over 300 Chinese apps, including TikTok, and tightened regulations for Chinese companies investing in India, citing security concerns.

The Communist Party’s People’s Daily publishes the patriotic newspaper Global Times. Its opinions do not always represent policymakers’ official thinking.

A request for comment on the Global Times’ viewpoint was not immediately returned by the Enforcement Directorate or an Indian government representative. Xiaomi, India’s largest smartphone manufacturer with a 24 percent market share and 1,500 employees, did not respond as well.

Xiaomi’s India bank accounts were seized on April 29 by the directorate, which said the company made unlawful transactions abroad “under the pretense of royalty” payments.

The agency’s judgment was put on hold by an Indian court last week, and the issue will be reviewed again on May 12. Xiaomi denies any wrongdoing and claims that all royalties are legal.

“It is fair to say that Xiaomi hasn’t been able to communicate effectively with Indian regulators,” Global Times said. “What has happened to Xiaomi could be seen as another example of India’s crackdown on Chinese companies.”

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