Tue. Jun 25th, 2024

Xiaomi, the Chinese smartphone manufacturer, has expressed concerns about the scrutiny of Chinese companies by the Indian government, stating that suppliers are wary of setting up operations in India. Xiaomi has asked the Indian government for manufacturing incentives and lower import tariffs to encourage component suppliers to establish operations locally. The company’s letter to the Indian information technology ministry highlights the challenges faced by Chinese companies in India, particularly in the smartphone space where many critical components come from Chinese suppliers. Xiaomi also called for the government to address compliance and visa issues and work to instill confidence among suppliers. The Indian government has increased scrutiny of Chinese businesses following a border clash between the two countries in 2020, disrupting the investment plans of Chinese companies and leading to protests from Beijing. In addition to regulatory scrutiny and bans on Chinese apps, Chinese electronics companies have faced difficulties in obtaining visas for executives and slow investment clearances due to heavy scrutiny.