China slams New Delhi for ‘suppressing’ Chinese firms after tax raid on Huawei’s India offices
- Huawei confirmed on Wednesday that India’s tax officials had visited the company’s local offices and spoke to employees
- China is ‘deeply concerned’ about India’s ‘suppression of Chinese firms’, said Gao Feng, spokesperson for China’s commerce ministry
China accused India of “suppressing” Chinese companies after Indian tax authorities raided the offices of Huawei Technologies Co, which said it would seek more information on the case and “fully cooperate” with local authorities.
In a statement issued Wednesday, the Chinese telecoms giant confirmed that India’s tax officials had visited the company’s offices in India and spoke to employees.
Reuters reported that tax officials had raided Huawei’s offices in New Delhi, the nearby city of Gurugram, and the tech hub Bengaluru.
Huawei said it was confident that its India operation was “firmly compliant with all laws and regulations”.
“We will approach related government departments for more information and fully cooperate as per the rules and regulations and follow the right procedure,” the company said.
The raid is the latest example of India’s tightened scrutiny of Chinese tech companies amid geopolitical tensions between the neighbouring giants.
It also triggered a sharp response from Beijing. China is “deeply concerned” about India’s “suppression of Chinese firms”, Gao Feng, spokesperson for China’s commerce ministry, said on Thursday, without naming Huawei.
“We noticed intensifying concerns about India’s investment environment from foreign investors, including Chinese companies,” Gao said. “We hope that India could foster a fair, transparent and non-discriminatory business environment for Chinese companies in India.”
Xiaomi said it was negotiating with local authorities over the amount to be paid, noting that there was “different opinions on the price determination of imported goods”.
Separately, India is not a significant smartphone market for Huawei. The company accounted for well under 1 per cent of the country’s 161 million smartphone shipments in 2021, according to research firm IDC.