China’s State Media Criticizes India’s Regulatory Crackdown on Xiaomi

According to Chinese official media, the perception that Chinese and other foreign enterprises could be purposely targeted. And stifled isn’t anything desirable or favorable for India, which slammed Indian raids on Chinese technology brand Xiaomi.

China’s State Media Research

Xiaomi, a Chinese smartphone company, has been subjected to significant regulatory pressure in India, raising concerns about Chinese companies’ future there.

“While it is too early to say whether India is deliberately targeting Xiaomi at this time,” the research concluded, “uncertainties regarding Xiaomi’s regulatory issue should raise a warning flag for India.”

The Enforcement Directorate (ED) has acquired Rs 5,551.27 crore from Xiaomi Technology India Pvt Ltd, launching an investigation into the business for allegedly violating the Foreign Exchange Management Act (FEMA) of 1999. Over the weekend, reports arose that Xiaomi’s top executives were threatened with “physical assault” and coercion while questioned by Indian officials. The ED, on the other hand, said the charges were “untrue and unsubstantiated.”

According to the sources, Xiaomi’s detention could be considered evidence of India’s anti-Chinese crackdown. “No one understands whether such a business animosity will lead to more Chinese companies in the Indian market being subjected to increased regulatory scrutiny in the future.”

More Details About the Matter

Similarly, the Karnataka High Court has ordered the Enforcement Directorate to suspend its April 29 order seizing Rs 5,551.27 crore from Xiaomi. Last week, Justice Hemant Chandangoudar granted a stay of the ED judgment on the petitioner’s provision to use the bank accounts held under the challenged order to carry out the company’s day-to-day operations.

According to the report, India still confronts a long-term challenge in strengthening its manufacturing industry, and one of the top priorities in achieving this aim is recruiting foreign investment.

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