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India suspects the Chinese giant of smartphones Xiaomi of illegally transferring money to China and thus seizing $725 million from the Chinese company’s accounts. All in a context of economic tensions between the two countries.
The Indian subsidiary of the giant smartphones Xiaomi allegedly broke foreign exchange laws and paid out $725 million in royalties to three overseas-based entities. For the Indian financial authorities, which had opened an investigation last February, it is the Chinese parent company which would have orchestrated these illegal exchanges.
Accusations vigorously denied by the manufacturer of smartphones, who has been in the country since 2014. On New Delhi TV, he said he complied with local laws and made legitimate payments. Before adding that the misunderstanding would quickly be clarified with the authorities.
Relations at rock bottom between the two countries
But nothing is less certain, because even if China is one of India’s leading trading partners, as evidenced by the $125 billion in bilateral trade last year, relations between the two countries are at their lowest for two years. Especially with the tensions on the Himalayan border.
This seizure of several hundred million dollars follows a search of Xiaomi’s Indian offices last December. Searches which have not escaped the other Chinese telephone manufacturers either, including the against Huawei.