Indian authorities have seized $725 million from Chinese smartphone company Xiaomi, accusing it of violating the country’s currency laws by making illegal shipments abroad.
NEW DELHI – Indian authorities on Saturday seized $725 million from Chinese smartphone company Xiaomi, accusing it of violating the country’s currency laws by making illegal shipments abroad, officials said.
The agency said the smartphone maker transferred $725 million to “three foreign entities” under the guise of royalty payments, according to a statement cited by the Press Trust of India. Earlier this month, the agency also questioned Xiaomi’s global vice president, Manu Kumar Jain, at the company’s regional office in the city of Bangalore, the PTI reported.
The smartphone company said it complied with local laws and added that its “royalty payments and statements” were “legitimate and truthful”. He said he is committed to working closely with the government to clear up any misunderstandings.
“These royalty payments that Xiaomi India made were for licensed technologies and IPs used in our Indian version products. It is a legitimate business arrangement for Xiaomi India to make these royalty payments,” the statement said.
Two years ago, India banned more than 100 Chinese-owned apps as tensions between the countries escalated due to border clashes. In June 2020, Indian and Chinese troops fought with sticks, stones and fists along a disputed section of their border, leaving 20 Indian soldiers and four Chinese soldiers dead.
Since February last year, the two countries have withdrawn troops from some locations, but they still maintain a presence. In March, Chinese Foreign Minister Wang Yi traveled to New Delhi to discuss accelerating troop disengagement and the possibility of de-escalating the situation.