Xiaomi ‘disappointed’ with India freezing its assets

• Xiaomi expresses “disappointment” with an Indian order that froze $682 million of its assets.
• An Indian appellate court upheld an April order by a financial crime-fighting agency to seize 55.51 billion rupees.
• Xiaomi and Samsung lead the smartphone market in India, the second largest in the world after China.

Sunday, Chinese smartphone manufacturer Xiaomi Corp (1810. HK) expressed “disappointment” with an Indian order that froze $682 million of its assets and vowed to continue defending its interests.

Friday, an Indian appellate court upheld an April order by India’s federal financial crime-fighting agency, the Enforcement Directorate, to seize 55.51 billion rupees, citing an investigation that revealed Xiaomi had made illegal remittances to foreign entities by misrepresenting them as royalty payments.

In a statement released on Sunday, the Chinese smart devices manufacturer stated that over 84% of the 55.51 billion Indian rupees confiscated by the Enforcement Directorate earlier this year were royalties paid to the American chipset giant Qualcomm Group (QCOM.O)

“We will continue to use all means to protect the reputation and interests of the company and our stakeholders,” it said.

According to the business, Xiaomi India is an affiliate and one of the Xiaomi Group companies that entered into a legal deal with Qualcomm to license intellectual property for smartphone manufacture.

Tech giant and Qualcomm concur that it is a legitimate business arrangement for Xiaomi India to pay Qualcomm royalties, according to the statement.

According to data from Counterpoint Research, Xiaomi and Samsung lead the smartphone market in India, the second largest in the world after China, with a combined 18% share.

Due to political concerns resulting from a 2020 border confrontation, it has been difficult for several Chinese firms to conduct business in India.

India has now banned more than 300 Chinese apps, including popular ones such as TikTok, citing security concerns, and has also tightened requirements for Chinese corporations investing in India.

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