India must stop its “regulatory attack” on Chinese companies, state-backed Chinese newspaper Global Times said, after smartphone maker Xiaomi threatened “physical violence” in the Indian investigation.
Reuters reported on Saturday that Xiaomi Told a court that its top officials faced threats and coercion during interrogation Enforcement Directorate Investigating illegal money. The agency, the Enforcement Directorate, called the allegations “untrue and baseless”.
Citing the story, the Global Times said in an opinion piece late on Sunday that Xiaomi’s “uncertainty over the regulatory plight should raise a red flag for India” and asked New Delhi to deflect “regulatory attacks on Chinese companies”. said.
“The notion that Chinese and other foreign companies can be deliberately targeted and suppressed is not good or favorable for India,” it added.
“It is very important for India to maintain normal and effective communication and coordination with Chinese investors.”
Tensions after border clashes in 2020 have caused many Chinese companies to struggle to do business in India. India has since banned more than 300 Chinese apps citing security concerns – including TIC Toc – and stringent norms for Chinese companies investing in the country.
The Global Times is a nationalist newspaper published by the Communist Party’s People’s Daily. Its views do not necessarily reflect the official thinking of policy makers.
The Enforcement Directorate and a government spokesperson did not immediately respond to requests for comment on Global Times’s outlook. Xiaomi, the largest smartphone vendor in India with 24 per cent market share and 1,500 employees, also did not respond.
The ED on April 29 seized $725 million (about Rs 5,600 crore) in Xiaomi’s India bank accounts, saying it made illegal remittances abroad “under the guise of royalty”.
Last week a court stayed the agency’s decision, and the next hearing of the case will take place on May 12. Xiaomi denies any wrongdoing and states that all royalty payments are legitimate.
“It is fair to say that Xiaomi has not been able to communicate effectively with Indian regulators,” the Global Times said. “What happened to Xiaomi can be seen as another example of India’s crackdown on Chinese companies.”