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India freezes $682 million from Chinese company

India freezes $682 million from Chinese company

India has seized $682 million in assets from Chinese mobile phone maker Xiaomi for "illegal money transfers for intellectual property rights to foreign companies".

Publish Date: 03/10/22 14:44
reading time: 2 min.
India freezes $682 million from Chinese company
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According to reports in the national media in India, the appellate authority, which deals with disputes regarding asset transfers by foreign companies, has upheld the Customs Enforcement Directorate's decision to freeze the assets of Chinese company Xiaomi on April 29.

In the decision, Xiaomi transferred the payments made to the US microchip manufacturer Qualcomm in return for the intellectual property rights of the chips used in the smartphones it produced, in a manner contrary to the Foreign Exchange Clearing Management Act, and it was not illegal to keep the payments out of India by another company affiliated with the group. specified.

In the statement made by Xiaomi, it was argued that the transfers were made in accordance with the contract made by the company's subsidiary in India, Qualcomm.

Noting that Xiaomi and Qualcomm are of the opinion that the transfers are made in accordance with legitimate commercial regulations, the statement said, "We will use all legal remedies to protect the reputation of our company and the interests of our shareholders." statement was included.

According to the data of the market research company Counterpoint Research, Xiaomi is the leader in the mobile phone market in India with a share of 18 percent each with the South Korean manufacturer Samsung.

After the border conflict between India and China in June 2020, Chinese companies faced difficulties and obstacles in their operations in the country. The New Delhi administration, while banning more than 300 mobile applications developed by Chinese internet companies for security reasons, made the investment conditions difficult.

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