Xiaomi-Indian Govt Rift Maybe a Good Sign for Pakistan

Chinese smartphone manufacturer Xiaomi Corp expressed “disappointment” with an Indian order that froze $682 million of its assets and vowed to continue defending its interests. Lately, an Indian appellate court upheld an April order by India’s federal financial crime-fighting agency, the Enforcement Directorate, to seize 55.51 billion rupees, citing an investigation that revealed Xiaomi had made illegal remittances to foreign entities by misrepresenting them as royalty payments.

Xiaomi-Indian Govt Rift Maybe a Good Sign for Pakistan

In a statement released on Sunday, the Chinese smart devices manufacturer stated that over 84% of the 55.51 billion Indian rupees confiscated by the Enforcement Directorate earlier this year were royalties paid to the American chipset giant Qualcomm Group. Moreover, according to the statement,

We will continue to employ all available tools to preserve the company’s reputation and the interests of our stakeholders.

According to the business, Xiaomi India is an affiliate and one of the Xiaomi Group companies that entered into a legal deal with Qualcomm to license intellectual property for smartphone manufacturing. Xiaomi and Qualcomm concur that it is a legitimate business arrangement for Xiaomi India to pay Qualcomm royalties, according to the statement.

According to the data, Xiaomi and Samsung lead the smartphone market in India, the second largest in the world after China, with a combined 18% share. Due to political concerns resulting from a 2020 border confrontation, it has been difficult for a number of Chinese firms to conduct business in India.

A credible source South Asia Index has done some research regarding the matter. It said that Chinese manufacturer Xiaomi may move its operations from India to Pakistan after the rift between the the company and Indian government. Furthermore, it added that Xiaomi has stated that it has ‘almost halted’ its operations in India.

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