This money went to three foreign companies, including one under the broader Xiaomi emblem. The Enforcement Directorate found that Xiaomi designed the payments to benefit itself. “Such huge sums in the name of royalties were paid at the behest of the Chinese entities of their parent group,” the agency said. The Indian Enforcement Directorate began investigating the subsidiary, among a handful of other local Chinese companies, last December. He accused Xiaomi of providing “misleading information to banks when sending money abroad”. On Twitter, Xiaomi said it believed its payments were legal. “These royalties made by Xiaomi India related to the technologies and IPs used under license in our products in the Indian version,” the company said. “We are committed to working closely with government authorities to clarify any misunderstandings.” We contacted the company for additional information and comments. Since last year, Xiaomi has been the leading smartphone maker in India, with a dominant market share of 24%. But like many Chinese companies in India, it has recently been forced to adopt a regulatory regime that has become less hospitable to Chinese business interests. In 2021, India temporarily banned TikTok after the country’s border dispute with China and later reportedly blocked WiFi device approvals to encourage domestic production. All products offered by Engadget are selected by our editorial team, regardless of our parent company. Some of our stories include affiliate links. If you purchase something through one of these links, we may gain an affiliate commission.
