New Delhi: After smartphone maker Xiaomi Corp alleged threats of โphysical violenceโ in Indian investigations, state-backed Chinese daily Global Times said India should stop its โregulatory assaultโ 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 โuntrue and unsubstantiatedโ by the Enforcement Directorate.
In an opinion article published late Sunday, the Global Times cited the report, saying that the ambiguity surrounding Xiaomiโs โregulatory predicament should raise a red signal for Indiaโ and urging New Delhi to end its โregulatory onslaught on Chinese enterprises.โ
โThe impression that Chinese and other foreign companies could be intentionally targeted and suppressed isnโt something good or favourable for India,โ it said.
โIt is of great importance for India to maintain normal and effective communication and coordination with Chinese investors.โ
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 Partyโs Peopleโs Daily publishes the patriotic newspaper Global Times. Its opinions do not always represent policymakersโ official thinking.
A request for comment on the Global Timesโ viewpoint was not immediately returned by the Enforcement Directorate or an Indian government representative. Xiaomi, Indiaโs largest smartphone manufacturer with a 24 percent market share and 1,500 employees, did not respond as well.
Xiaomiโs India bank accounts were seized on April 29 by the directorate, which said the company made unlawful transactions abroad โunder the pretense of royaltyโ payments.
The agencyโs 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.
โIt is fair to say that Xiaomi hasnโt been able to communicate effectively with Indian regulators,โ Global Times said. โWhat has happened to Xiaomi could be seen as another example of Indiaโs crackdown on Chinese companies.โ
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