The Indian Financial Crimes Investigation Agency announces that it has seized $725 million from the accounts of the Chinese company Xiaomi. A decision that is framed in a context of tensions between India and China.
What happened to the accounts of the Chinese giant Xiaomi? India’s Financial Crimes Investigation Agency, which fights money laundering in particular, has announced that it has seized $725 million from bank accounts Xiaomi facilities. India accuses Chinese smartphone specialist of having illegally sent money abroad, subject to payment of royalties. A blow to Xiaomi, which dominates the Indian smartphone market; in addition to progressing to the four corners of the world.
This Indian agency had launched an investigation in February and issued a press release to discuss this matter. “Huge amounts were paid on behalf of royalties at the request of the Chinese parent entities”the agency said in a statement. Strong accusations that the Indian branch of Xiaomi denies, explaining that these operations were “Firmly complies with local laws and regulations”. In a message posted on Twitter, Xiaomi India adds: “We are committed to working closely with government authorities to clear up any misunderstandings.”.
—Xiaomi India (@XiaomiIndia) April 30, 2022
The former director of Xiaomi India has already been summoned for questioning on this matter. The Chinese firm has also been in the sights of the Indian agency for many months. His Indian office was raided in December, in connection with another case of tax evasion allegations. Xiaomi is not the only company that is interested India, which is also investigating the case of other manufacturers Chinese smartphones, including Huawei. The firm behind the Mate Xs 2 saw its Indian offices raided in December. One more problem for a society already altered by US sanctions.
Tensions between Beijing and New Delhi
These cases are not alien to the renaissance of tensions between india and china. The two most populous countries in the world have maintained tense relations for several months. AFP also reports that the “Anti-Chinese sentiment has grown in India since 2020” ; even though China remains an important economic partner. Symbol of these growing tensions, hundreds of chinese mobile apps They are banned in India. The essential TikTok is part of this list and the Indian government evokes the need to protect itself from threats to the country’s sovereignty.
These measures give free rein to other applications; like Roposo, which stands out as an Indian equivalent of the Chinese social network TikTok.