China’s Xiaomi says it will protect its business interests after India freezes its assets

MUMBAI, Oct 3 (Reuters) – Chinese smartphone maker Xiaomi Corp (1810.HK) said on Sunday it was “disappointed” with an order from India that froze its $682 million assets and would continue to protect its interests.

India’s Appellate Body on Friday confirmed an April order by India’s federal financial crime-fighting agency, the Enforcement Directorate, to seize Rs 5,551 crore, saying an investigation found Xiaomi illegally sent money to foreign entities by using it as royalties.

Of the 55.51 billion rupees seized by the enforcement agency earlier this year, more than 84 percent were paid to U.S. chip company Qualcomm Group (QCOM.O) for royalties, the Chinese smart device company said in a statement on Sunday. fee.

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

Xiaomi India, a subsidiary of Xiaomi Group and one of the Xiaomi Group companies, has signed a legal agreement with Qualcomm to license intellectual property rights to manufacture smartphones, the company said.

Both Xiaomi and Qualcomm believe that Xiaomi India’s payment of royalties to Qualcomm is a legitimate business arrangement, the statement said.

With an 18 percent share each, Xiaomi and Samsung jointly lead the Indian smartphone market, the world’s second-largest smartphone market after China, according to Counterpoint Research.

Many Chinese companies have been struggling to do business in India due to political tensions following the 2020 border conflict.

Since then, India has banned more than 300 Chinese apps, including popular ones such as TikTok, citing security concerns, and tightened rules on Chinese companies investing in India.

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Reporting by Rupam Jain; Editing by Sandra Mahler

Our Standard: The Thomson Reuters Trust Principles.

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