Beijing Urges New Delhi To Provide Fair Business Environment For Chinese Companies

China on Monday urged Indian authorities to provide a fair, just and non-discriminatory business environment for its companies after Chinese smart phone maker Xiaomi's top executives faced threats of physical violence and coercion

BEIJING, (APP - UrduPoint / Pakistan Point News - 9th May, 2022 ) :China on Monday urged Indian authorities to provide a fair, just and non-discriminatory business environment for its companies after Chinese smart phone maker Xiaomi's top executives faced threats of physical violence and coercion.

"We hope India will provide a fair, just and non-discriminatory business environment for Chinese companies, conduct investigation and law enforcement in accordance with laws and regulations so as to increase the confidence of global investors" Chinese Foreign Ministry Spokesperson Zhao Lijian said during his regular briefing.

He said that China was closely following the situation and added that Chinese government always asked Chinese companies to abide by laws and regulations while doing business overseas. But at the same time, it firmly supports the Chinese companies in upholding their lawful rights and interests, he said.

According to Global Times, the Chinese smart phone maker had come under intense regulatory pressure in the Indian market, which may raise concerns over Chinese companies' development in India.

Right after a media report said that xiaomi alleged its top executives faced threats of "physical violence" and coercion during questioning by Indian officials, India Enforcement Directorate on Saturday issued a statement saying the allegations are untrue and baseless.

Ever since Indian tax inspectors raided Xiaomi's India offices in December, the company has been embroiled in a tax tussle with the Enforcement Directorate over its remittance to foreign-based entities.

And judging by the latest media reporting, it is fair to say that Xiaomi hasn't been able to communicate effectively with Indian regulators.

While it is premature to claim whether India is intentionally targeting Xiaomi now, uncertainty is surrounding Xiaomi's regulatory predicament should raise a red flag for India.

This is because what has happened to Xiaomi could be seen as another example of India crackdown on Chinese companies, and no one knows whether such an event of business hostility would lead to more Chinese companies there subject to growing regulatory scrutiny in the Indian market in the future.

If anything, the impression that Chinese and other foreign companies could be intentionally targeted and suppressed isn't something good or favorable for India, the newspaper added.