According to India's Business Standard newspaper, on December 23, the Revenue Department of the Ministry of Finance of India launched a major blow to local Chinese companies.
The entire number of mobile phone manufacturers and distributors in India is included, among them, there are mobile phone manufacturers from China, OPPO, Xiaomi, Foxconn, etc. have been subjected to surprise inspections by the Indian Revenue Authority.
On the evening of the 21st, more than 20 regions in India began surprise inspections; Mumbai, Delhi, Bangalore and other regions were among its inspection ranks. According to local media reports in India, the raid lasted a whole day, from the evening of the 21st to the evening of the 22nd, the Tax Bureau announced the end of the operation.
Companies from Chinese manufacturers such as Redmi, OPPO and Foxconn, as well as distributors associated with these companies, have been inspected, and some of them have been taken away for questioning by the Indian Revenue Authority.
An Indian official revealed that the surprise inspection was carried out because of the receipt of "intelligence" showing that Chinese companies were hiding actual income, creating the illusion of losses and other behaviors that harmed the commercial market. Although it is not known where the intelligence came from, it is only a gimmick to give the Indian government a search, because this is not the first time that Chinese companies have been subjected to surprise inspections in the local area.
The Indian government has found an excuse for the raid: there is "evidence" that many Chinese companies and their partners have not ruled out the suspicion of laundering money for themselves by registering shell companies.
On the 22nd, a Xiaomi spokesperson responded to this, saying that as an investment partner in India, in strict compliance with Indian laws in the local area, things that violate and break local rules will never be done, because what Chinese enterprises do is not only the image of the company, but also the image of the country, so everything will be repeatedly considered, and the wrong things that damage the image of the country and the company will not be done.
Other companies have also said that they will attach great importance to and actively cooperate with the relevant investigations of the Indian government and provide correct information.
Some relevant people have analyzed that since the major conflict between the border between China and India last year, India has been in the name of "national security" and has repeatedly cracked down on Chinese enterprises, and has also restricted the use of relevant procedures developed by Chinese enterprises in many ways. Therefore, this time it is not difficult to see that the surprise inspection is actually a new round of Attack on Chinese Enterprises by India.
India has always wanted to develop its own mobile phone brand, but because Chinese smartphones are very popular in India, the Indian people are very partial to Chinese smartphones, followed by South Korea's Samsung mobile phones. However, the more it sells well, the greater the "obstacle" to India's own brands, so it is almost impossible for Indian local brands to occupy an important position in the market.
Therefore, after Modi was elected prime minister, he launched the "Made in India" program, hoping to escort local companies through this plan. There are even policies in place to restrict foreign development in the Indian market. Modi's approach is nothing more than closing the country and forcing the people to accept local resources, but in fact, it has to be admitted that India has no achievements in all aspects and is difficult to convince the public.
What's more, because the products produced by Chinese enterprises are of high quality and low price, the quality is very highly guaranteed in the case of no price change; and many poor families have enjoyed such products, which has made a certain contribution to the development of Indian society.
Now, under the blow of India, many companies have begun to shift to "Southeast Asia".
The international studies researcher at Fudan University in China explained that India's approach is mixed with political factors, and The Sino-Indian relations themselves are very tense, and India has always believed that China has hindered India's development. In the face of India's economic situation is not optimistic, under the offensive of the two sides, India has made a poor choice.
The Indian side does not care whether Chinese companies will develop in the Indian market, and even for them, the best thing is that India's local enterprises are strong, which is "the best" for the country's economic development, but in the near future, as foreign companies continue to withdraw from the Indian market, Modi will understand how stupid his current behavior is in the future.