India should halt its “regulatory attack” on Chinese companies, the state-backed Chinese newspaper Global Times said after smartphone maker Xiaomi made alleged threats of “physical violence” in Indian investigations.
Reuters reported Saturday that Xiaomi told a court that its top executives faced threats and coercion during questioning by the Enforcement Directorate, which investigates illegal wire transfers. The authority, the Enforcement Directorate, called the allegations “untrue and unfounded”.
Citing the story, the Global Times said in an opinion piece late Sunday that uncertainty surrounding Xiaomi’s “regulatory predicament should raise a red flag for India” and urged New Delhi to halt its “regulatory assault on Chinese companies.”
“The perception that Chinese and other foreign companies could be deliberately targeted and oppressed is neither good nor favorable for India,” it said.
“It is of great importance for India to maintain normal and effective communication and coordination with Chinese investors.”
Many Chinese companies are struggling to do business in India due to tensions following a border dispute in 2020. India has cited security concerns as it has since banned more than 300 Chinese apps – including TikTok – and tightened norms for Chinese companies investing in the country.
Global Times is a nationalist tabloid published by the Communist Party’s People’s Daily. His views do not necessarily reflect the official opinion of policy makers.
The Enforcement Directorate and a government spokesman did not immediately respond to a request for comment on the Global Times’ view. Xiaomi, the largest smartphone seller in India with a 24 percent market share and 1,500 employees, also did not react.
The ED seized US$725 million (around Rs.5,600 billion) in Xiaomi bank accounts in India on April 29 and said it had made illegal remittances abroad “under the guise of royalties”.
A court last week put the agency’s decision on hold, and the case will next be heard on May 12. Xiaomi denies any wrongdoing and says all royalties are legitimate.
“It is fair to say that Xiaomi has not been able to communicate effectively with Indian regulators,” Global Times said. “What happened to Xiaomi could be seen as another example of India’s crackdown on Chinese companies.”
https://gadgets360.com/mobiles/news/xiaomi-ed-case-chinese-state-media-statement-regulatory-assault-2958668 India should stop “regulatory attack” on Chinese firms, Chinese state media say after Xiaomi allegations