India is exploring to prohibit smartphones under Rs 12,000 from Chinese manufacturers. The move said to targeted at pushing Chinese giants out of the lower segment of the Indian market, a report said earlier this week. With reports of smartphones under Rs 12,000 from manufacturers like Xiaomi, Vivo, Oppo, and more prohibited from surfacing, the Chinese Foreign Ministry has jumped to the defence of Chinese firms. This comes at a time when Chinese brands are already under the review for alleged financial corruption and business malpractices. In a statement, the Chinese Foreign Ministry has requested India to “earnestly accomplish its commitment to openness and cooperation.”
The statement from the Chinese Foreign Ministry Spokesperson on details about India’s plans to prohibit sale of Chinese smartphones under Rs 12,000 says that “the trade and economic cooperation between China and India is mutually beneficial in nature.” “We request the Indian side to earnestly accomplish its commitment to opennes and cooperation, and proffer an open, fair, just, and non-discriminatory investment and business environment for Chinese establishments. China will advocate Chinese companies in defending their lawful interests and rights,” the statement said.
The statement comes after a Bloomberg report cited people amicable with the matter saying that the government is exploring to prohibit Chinese smartphones priced under Rs 12,000 or $150. The ban said to come with the concern of high-volume Chinese brands damaging local manufacturers. A minister also quoted as saying in Business Standard that the control of Chinese brands in the market has not been on the basis of “free and fair competition.” Representatives from Xiaomi, Realme, and Transsion did not react to requests seeking comments.
Recently, Chinese smartphone manufacturers are already facing scrutiny from the Indian administration over their finances on suspicion of tax evasion and money laundering. Recently, Chinese firms like Xiaomi, Vivo, and Oppo came under the Enforcement Directorate’s radar over misappropriate funds. In July, the Enforcement Directorate executed searches in 48 locations across India belonging to Vivo. Before that, in April, ED had performed raids in Xiaomi locations and confiscated Rs 5,551 crores worth of assets belonging to Xiaomi Technology India.
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