India ought to cease its “regulatory assault” on Chinese corporations, state-backed Chinese newspaper Global Times mentioned, after smartphone maker Xiaomi Corp alleged threats of “physical violence” in Indian investigations.
Reuters reported on Saturday that Xiaomi had instructed an Indian court docket that its high executives confronted threats and coercion throughout questioning by an Indian company investigating unlawful remittances. The company, the Enforcement Directorate, known as the “untrue and baseless”.
Citing the story, the Global Times in an opinion piece late on Sunday mentioned the uncertainty surrounding Xiaomi’s “regulatory predicament should raise a red flag for India” and requested New Delhi to cease its “regulatory assault on Chinese companies”.
“The impression that Chinese and other foreign companies could be intentionally targeted and suppressed isn’t something good or favorable for India,” it mentioned.
“It is of great importance for India to maintain normal and effective communication and coordination with Chinese investors.”
Many Chinese corporations have struggled to do enterprise in India on account of tensions following a border conflict in 2020. India has cited safety issues in banning greater than 300 Chinese apps since then – together with TikTok – and tightened norms for Chinese corporations investing in India.
Global Times is a nationalistic tabloid revealed by the Communist Party’s People’s Daily. Its views don’t essentially mirror the official pondering of policymakers.
The Enforcement Directorate and an Indian authorities spokesperson didn’t instantly reply to a request for touch upon the Global Times’ view. Xiaomi, the most important smartphone vendor in India with a 24% market share and 1,500 staff, additionally didn’t reply.
The directorate on April 29 seized $725 million in Xiaomi’s India financial institution accounts, saying it made unlawful remittances overseas “in the guise of royalty” funds.
An Indian court docket final week placed on maintain the company’s resolution, and the case will subsequent be heard on May 12. Xiaomi denies any wrongdoing and says all royalty funds are respectable.
“It is fair to say that Xiaomi hasn’t been able to communicate effectively with Indian regulators,” Global Times mentioned. “What has happened to Xiaomi could be seen as another example of India’s crackdown on Chinese companies.”
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With inputs from TheIndianEXPRESS
