Chinese tech giant Xiaomi has expressed concern about the increased scrutiny that Chinese companies operating in India are facing. Following the 2020 border clash between India and China, the Indian government has heightened its vigilance of Chinese businesses. This has disrupted investment plans for several Chinese companies, including Xiaomi, which assembles smartphones locally in India.
In a letter addressed to the Indian government, Xiaomi highlighted two main points. Firstly, component suppliers are wary of establishing operations in India due to the heightened scrutiny of Chinese companies. This has created apprehension, particularly among suppliers of Chinese origin. Xiaomi stressed the need for confidence-building measures to address concerns related to compliance, visas, and other factors that would instill trust among foreign component suppliers.
Secondly, Xiaomi urged India to consider offering incentives and lowering import tariffs for specific smartphone components. These measures would encourage suppliers to set up manufacturing facilities within India, thereby boosting the local ecosystem. Xiaomi India President, Muralikrishnan B., emphasized the importance of these measures, stating that the Indian government’s proactive approach in this regard is crucial for attracting investments and fostering a conducive environment for manufacturing.
Xiaomi’s letter sheds light on the challenges faced by Chinese companies operating in India, but it also underscores the need for collaboration between the two countries.
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