The appeal in India was rejected, Indian netizen: Xiaomi's $670 million assets are about to be robbed?

Tech 2023-05-15 15:39:57 Source: Network

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Many netizens have stated that when doing business with Indians, they must receive money before clearing the goods, and have bluntly stated that "Indian transactions are not very particular".

Xiaomi, a local mobile phone brand in China, has suffered from India's "dark box operation", with $670 million intercepted by India. What is the matter? Next, let's learn about how India has sanctioned foreign companies like Xiaomi.

Any brand wants to become stronger after becoming bigger, and the path they often choose is to explore foreign markets. But is it really so easy to open up foreign markets? Obviously, it's not that simple.

Domestic mobile phone brands such as Huawei, VIVO, and Xiaomi, on the one hand, want to expand their overseas development channels, and on the other hand, they have also been attracted by the means of attracting foreign investment from Indian countries in recent years.

But the reality is always unsatisfactory, and these Chinese brands that have developed in India have not achieved particularly good development, instead causing a lot of trouble. As is well known, the last thing Indians know is face, they never scrutinize anything else.

It is even more difficult to achieve good development in India, even if all of the company's businesses fully comply with local laws and regulations. With the business environment in India, no brand can expect a bright future.

India treats foreign enterprises "equally". Wal Mart and Ford, for example, have been killed by India for hundreds of millions of dollars before they exit. How can Xiaomi be an exception? India requires every amount of money to be consumed in India, and no one wants to take it away.

Xiaomi entered India in 2014, and at that time, the then Indian leader also specifically met with Xiaomi's CEO Lei Jun. It can be imagined that India attaches great importance to this cooperation.

The reason for doing this is because in recent years, regardless of which aspect, China's development has surpassed or even led India.

Xiaomi has made a huge contribution to the communication market in India.

Before Xiaomi entered the Indian market, India's mobile phone industry was considered a severely underdeveloped country in the world. It was a populous country with a mobile phone penetration rate of only 10%, among which very few people used smartphones.

Since 2014, Xiaomi's significant investment in the Indian market has enabled more Indians to afford smartphones, indirectly promoting the overall development of science and technology in India.

There is an ancient Chinese saying that when you eat water, you never forget to dig a well. India has no gratitude for Xiaomi's contribution, but instead sheds the burden and kills the donkey.

In 2022, the Indian authorities forcibly confiscated Xiaomi's assets, providing the reason that Xiaomi brand falsely paid royalties for knowledge and technology authorization to remit overseas, which was actually tax evasion.

For this reason. Xiaomi certainly denies it, because the processors used by Xiaomi Company, whether in phones or tablets, are all Qualcomm processors from the United States, and it is reasonable to pay royalties on this part to the United States.

How could this be a violation? Why are you wearing the hat of tax evasion?

Although Xiaomi has filed a lawsuit with relevant Indian courts, it seems that they have not received a satisfactory result. The Karnataka Provincial High Court in India has rejected Xiaomi's appeal, and the large amount of money detained should be difficult for Xiaomi to retrieve.

In fact, this is a routine for India's economic development.

At the beginning, various support and preferential policies will be given to foreign industries, with the aim of allowing you to build factories in their country. Once the company gradually stabilizes, India's regulatory authorities will begin to make changes, and they will start various card verification processes for various unrealistic reasons.

Perhaps sometimes when employees and managers of a certain company are working, Indian regulators will suddenly open the door to inspect, and what they want is nothing more than fines or seizure of the company's project funds.

Why detain funds, because these manufacturers cannot take away these funds, so some people cannot apply for unfreezing? Of course, provided that the unfrozen money cannot be taken away and must be invested in India.

It doesn't seem to make much difference whether to unfreeze like this. In India, an underdeveloped economic market, the speed of capital flow cannot keep up with the speed at which brands want to develop.

Just like Xiaomi, in order to compete in the Indian market, it sold smartphones at low prices and low profits, which was not a small difference from its domestic price. According to relevant reports, Xiaomi's net profit in the Indian market was only a few hundred million yuan, and in the end, it was fined 650 million yuan.

Such cases are everywhere, and India's main source of foreign exchange is only a few. In addition to the money remitted by 32 million Indian people overseas and the export of food and other products to earn foreign exchange, it mainly relies on the investment of foreign enterprises.

India is fair to every country and every company. As long as companies choose to develop in India and want to occupy the Indian market, it is difficult for them to exchange the rupees they earn for dollars and carry them out. After all, how can this economically backward country allow its financial resources to be exposed?

Collaboration still cannot be achieved solely by expanding, but more importantly, by evaluating the market's capabilities. What do you think of this?

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