A well-known Chinese smartphone manufacturer, Xiaomi, reported that it was "disappointed" by the Indian authorities' decision to confiscate funds from its branch in the country equivalent to $682 million Xiaomi promises to continue to defend its unit's interests.
On Friday, Indian authorities confirmed the validity of April's order from the financial crime agency to confiscate Xiaomi India 55.51 billion rupees, and according to the agency, Xiaomi made illegal remittances to foreign entities for payment of royalties.
In their application, Xiaomi insists that more than 84% of this amount actually paid royalties earlier this year to the United States Qualcomm. The company promised to use all means to protect its reputation and interests, as well as the shareholders' interests, according to the available information, Xiaomi India did indeed enter into an agreement with Qualcomm to pay royalties related to the release of smartphones.
Today, Xiaomi and Samsung are leading the Indian smartphone market with 18% shares. According to Counterpoint Research, the Indian market is the second largest after Chinese. Many Chinese companies have recently experienced difficulties in conducting business in India because of political tensions between countries.
India, citing security concerns, has banned more than 300 Chinese applications since the conflict on the Indian-Chinese border in 2020, including popular services such as TikTok, as well as stricter business rules for companies in the Under heaven on its territory, and even intends to ban Chinese companies from selling smartphones cheaper than $150.