India imposes new conditions on Chinese smartphone manufacturers, requiring Indian officials to hold positions of power

India requires Chinese smartphone manufacturers to have Indian officials in positions of power

【PhoneAuto News】Recently, PhoneAuto noticed that India has proposed new conditions to Chinese smartphone manufacturers, requiring Indian nationals to hold positions such as CEO.

According to the Indian Economic Times on the 13th, the Indian government has requested that Chinese smartphone manufacturers such as Xiaomi, OPPO, realme, and vivo appoint Indian nationals as CEO, COO, CFO, and CTO. Additionally, the Indian government has instructed them to outsource contract manufacturing to Indian companies, develop manufacturing processes that involve local businesses, and export through local distributors. Furthermore, government officials have specifically instructed Chinese companies to comply with the law and not evade taxes in India.

India proposes new conditions to Chinese smartphone manufacturers

It is understood that Indian government officials raised these issues at a recent meeting held by the Ministry of Electronics and Information Technology, attended by Chinese companies such as Xiaomi, OPPO, realme, and vivo.

It is noteworthy that the detention of 5 billion yuan of Xiaomi’s funds by the Indian law enforcement agency has attracted continued international attention. According to reports, the Indian law enforcement agency has recently issued formal notices to Xiaomi’s Indian subsidiary, company executives, and three banks, accusing them of illegally transferring funds abroad and violating the Foreign Exchange Management Act (FEMA). The appellate authority froze 55.51 billion rupees (approximately 4.8 billion yuan) of Xiaomi’s funds last year in accordance with India’s foreign exchange law. As a reference, this amount is equivalent to 57% of Xiaomi’s net profit last year, a huge amount. In response to this matter, Xiaomi also responded by stating: “Xiaomi adheres to legal and compliant operations worldwide and complies with relevant laws and regulations in its place of operation.”

Market research firm Counterpoint data shows that in the first quarter of 2023, the total shipment of mobile phones in the Indian market was 31 million, a year-on-year decrease of 19%. Among them, vivo maintained the second position with a market share of 17%, Xiaomi’s market share was 16%, OPPO’s was 12%, and realme’s was 9%.

Experts said: “Chinese companies have a crushing market share in India compared to other competitors. If India wants to take measures against mobile phone manufacturers, the primary target will definitely be Chinese companies.” It can be seen that in recent years, Chinese mobile phone manufacturers have emphasized localization manufacturing in India and have recruited some Indian employees locally.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Phone

Huawei responds to the rebranding of HuaBianPay Essentially speeding up the construction of the HarmonyOS ecosystem.

【Mobile China News】On October 13th, the People's Bank of China officially announced that Huawei's payment instituti...

Phone

Huawei, Honor, and other shipment targets have increased by more than 70 million units, accounting for 5% of the global market.

【Mobile China News】On December 13th, supply chain sources revealed that Huawei, Honor, and Transsion have a positiv...

Phone

Huawei Terminal's full range of products stunningly appeared at the 2023 Digital Technology Ecology Conference

【Mobile China News】From November 10th to 13th, the 2023 Digital Technology Ecology Conference, organized by China T...

Phone

Huawei reportedly applied for multiple communication patents, effectively reducing beam management time.

[Mobile China News] On December 13th, according to an announcement by the National Intellectual Property Office, Huaw...

Phone

Strong Alliance! China Unicom and Huawei Launch Commercial 5G-A Flexible Production Line

[China Mobile News] Recently, China Mobile has noticed that China Unicom has partnered with Huawei to assist Jingchen...

Phone

Huawei and U+ jointly release database storage and calculation separation solution to accelerate the upgrading of China's industries.

[Mobile China News] On December 5, Mobile China noticed that according to the Science and Technology Innovation Board...