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India seizes $725 million from Chinese Xiaomi accounts

India seizes $725 million from Chinese Xiaomi accounts

India’s Financial Crimes Investigation Agency, which launched an investigation in February, said it had confiscated funds from local bank accounts after finding that Xiaomi’s Indian subsidiary had transferred funds to three overseas entities.

Huge amounts in the name of ‘royalties’ [compensações financeiras] “The payment was made at the request of the Chinese controlling entities,” the agency said in a statement on Saturday.

The Indian subsidiary of Xiaomi has denied the allegations, stressing that the financial operations are “in strict accordance with local laws and regulations”.

“We are committed to working closely with government authorities to clear up any misunderstandings,” Xiaomi India wrote on the social network Twitter.

Law enforcement officers visited Xiaomi’s India headquarters in December as part of a separate investigation into allegations of tax evasion involving other Chinese technology companies, including Huawei.

Xiaomi in March announced a net profit of 19.3 billion yuan (2.8 billion euros) in 2021, noting that most of its foreign business comes from the Indian and European markets.

Relations between India and China have been strained since June 2020, when clashes killed 20 Indian soldiers and at least four Chinese soldiers in the Ladakh region along the disputed border separating Arunachal Pradesh from Tibet.

India’s Home Ministry has banned hundreds of Chinese mobile apps, including the popular Tiktok platform, citing India’s need to prevent threats to the country’s sovereignty.

On April 7, India claimed that it was the victim of a cyber attack by Chinese “hackers” on the electricity distribution network near Ladakh.

Chinese Foreign Ministry spokesman Zhao Lijian denied that China had launched the attacks.

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