China’s Xiaomi says will shield enterprise pursuits after property frozen in India By Reuters

MUMBAI (Reuters) – Chinese language smartphone maker Xiaomi (OTC:) Corp on Sunday mentioned it was “disillusioned” with an Indian order that froze $682 million of its property and would proceed to guard its pursuits.

An Indian appellate authority on Friday confirmed an April order by India’s federal monetary crime preventing company, the Enforcement Directorate, to grab 55.51 billion rupees, saying a probe discovered Xiaomi had made unlawful remittances to overseas entities by passing them off as royalty funds.

The Chinese language sensible gadgets agency in an announcement on Sunday mentioned that over 84% of 55.51 billion Indian rupees seized by the Enforcement Directorate earlier this yr was the royalty fee made to U.S. chipset firm Qualcomm (NASDAQ:) Group

“We’ll proceed to make use of all means to guard the status and pursuits of the corporate and our stakeholders,” it mentioned.

The corporate mentioned that Xiaomi India is an affiliate and one of many Xiaomi Group firms, which entered right into a authorized settlement with Qualcomm to license IP for manufacturing smartphones.

Each Xiaomi and Qualcomm imagine that it’s a authentic business association for Xiaomi India to pay Qualcomm royalty, the assertion mentioned.

With an 18% share every, Xiaomi and Samsung (KS:) collectively lead the smartphone market in India, the world’s second largest after China, in keeping with information from Counterpoint Analysis.

Many Chinese language firms have struggled to do enterprise in India attributable to political tensions following a border conflict in 2020.

India has cited safety considerations in banning greater than 300 Chinese language apps since then, together with well-liked ones such TikTok, and likewise tightened guidelines for Chinese language firms investing in India.