Xiaomi has reportedly raised concerns over India’s strict scrutiny of Chinese companies, which is impacting the setting up of operations by smartphone parts suppliers in the country. According to a Reuters report, Xiaomi has informed New Delhi that due to the stringent oversight, component suppliers are exercising caution in establishing operations in India. Xiaomi, which holds the largest share of the Indian smartphone market, has requested manufacturing incentives and reduced import tariffs on certain smartphone components to alleviate the situation.
Regulatory scrutiny and visa concerns deter component suppliers
The letter from Xiaomi to India’s Ministry of Information Technology, dated February 6, was a response to an inquiry on how India can further develop its domestic parts manufacturing. Xiaomi’s president in India, Muralikrishnan B., emphasized the need for trust-building measures to encourage component suppliers to conduct business locally. Concerns raised in the letter include challenges faced by Indian subsidiaries of Chinese companies, particularly regarding compliance and visa issues.
The concerns highlighted in the letter underscore the broader challenges faced by Chinese companies operating in India. Indian authorities have previously accused Chinese smartphone company Vivo of violating visa regulations and embezzling significant sums from India. Additionally, Xiaomi faced asset freezes amid allegations of illegally transferring funds to foreign entities.
India’s regulatory scrutiny extends beyond smartphone manufacturers, with over 300 Chinese apps banned since 2020 and halted projects involving Chinese companies such as automaker BYD and Great Wall Motors. Executives from Chinese electronics firms have reportedly encountered difficulties in obtaining visas and facing delays in investment approvals due to the strict scrutiny.
In response to these challenges, Xiaomi has called for further reductions in India’s import duties, following recent moves by New Delhi to reduce import duties on certain components. Xiaomi believes that lowering import tariffs could enhance the competitiveness of Indian manufacturing in terms of cost. However, the company also acknowledges that greater incentives will be necessary to persuade component makers to establish factories in India.
Related:
- Get Redmi K70 Pro for discounted price of $499
- Xiaomi Band 8 Genshin Impact custom edion get a huge discount.
- Unlock Savings: Discount on Every Giztop Product under the New Year Sale
- Big Discount: AOOSTAR R1 N100 NAS Mini PC Only For $159
- Get latest Oneplus 12 Phone for $699 on Geekwills
(Source)
