Chinese smartphone maker Xiaomi says it will protect business interests after India froze US$682 million in assets
- Over 84 per cent of 55.51 billion rupees seized in India was a royalty payment to US chip giant Qualcomm, the company said
- Xiaomi is a leading smartphone brand in India, but it has become harder for Chinese firms operating in India since a 2020 border clash
An Indian appellate authority on Friday confirmed an April order by India’s federal financial crime fighting agency, the Enforcement Directorate, to seize 55.51 billion rupees, saying a probe found Xiaomi had made illegal remittances to foreign entities by passing them off as royalty payments.
“We will continue to use all means to protect the reputation and interests of the company and our stakeholders,” it said.
The company said that Xiaomi India is an affiliate and one of the Xiaomi Group companies, which entered into a legal agreement with Qualcomm to license intellectual property for manufacturing smartphones.
Both Xiaomi and Qualcomm believe that it is a legitimate commercial arrangement for Xiaomi India to pay Qualcomm royalty, the statement said.
Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020.