Xiaomi says it will protect its business interests after India's asset freeze of US$682 million

BEIJING: Chinese smartphone maker Xiaomi Corp said it will continue to defend its interests despite being "disappointed" by an Indian court order that frozen its US$682 million assets.

An Indian appellate authority on Friday confirmed that India's federal financial crime-fighting agency, the Enforcement Directorate, was empowered to confiscate Rs 55.51 billion in April after an investigation revealed that Xiaomi had misappropriated the amount as royalties. Illegal payments were sent to foreign organisations.

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In a statement issued on Sunday, the Chinese smart device company claimed that of the 55.51 billion Indian rupees seized by the Enforcement Directorate earlier this year, more than 84% of royalties were paid to US chip maker Qualcomm Group.

"We will continue to use all available tools to protect the interests of our stakeholders and the reputation of the company," the statement said.

The business claimed that Xiaomi India is a subsidiary and is one of the Xiaomi group companies that has signed a contract with Qualcomm for intellectual property license for the production of smartphones.

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According to the statement, both Qualcomm and Xiaomi feel that the payment of royalty by Xiaomi India to Qualcomm is a reasonable business arrangement.

According to Counterpoint Research data, Xiaomi and Samsung jointly hold the top spot in India's smartphone market, which is the world's second largest after China with a share of 18%.

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Political tensions that have existed since the border conflict in 2020 have made it difficult for many Chinese businesses to do business in India.

Apart from stringent regulations for Chinese businesses investing in India, India has banned over 300 popular Chinese apps, including TikTok, citing security concerns.

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