On April 30, India's Central Enforcement Agency (ED) pointed out that Xiaomi's Indian subsidiary was "illegally" sending money to foreign entities, a move suspected of violating India's foreign exchange laws, so Indian authorities have seized 555.127 million rupees (about 4.8 billion yuan) of assets from Xiaomi's local bank account in India.
It seems that the situation is really turbulent, and they have begun to grab money.
The United States robbed Russia of money, Ukraine owed China 4.5 billion yuan and did not pay it back, and India began to rob Xiaomi of money?
In response to the seizure of funds in its bank account by the Indian government department, Xiaomi India officially issued a statement saying: "The company strictly abides by Indian laws, the royalties paid are used for the licensed technology and intellectual property rights in the Xiaomi India version of the product, these royalties and bills are all legal and true, Xiaomi India is committed to working closely with the government department to clarify any misunderstandings."
This is actually the Indian government's easy-going closure of the door to fight the dog.
Although India and China are both populous countries, the gap in the introduction of foreign investment is too large.
We in China actively introduce foreign capital and give various preferential treatment to foreign capital, in order to exchange technology through the huge Chinese market, and at the same time, we use foreign capital as catfish to activate the competitiveness of domestic enterprises, Tesla is a distinct representative.
Our development over the years has also proved that this path is extremely successful.
But the Indian government treats foreign investment as a fat sheep and fattens up its hands.
Because of India's national conditions and weak manufacturing capacity, india generally lacks confidence in its own national enterprises. It is believed that once foreign capital is opened to entry, domestic enterprises will quickly go bankrupt under the impact of foreign capital, and India will completely become a dumping ground for foreign goods, and Indians are absolutely impossible to accept such a situation.
So India has long been a policy of trade protection and import substitution, and India ostensibly welcomes all foreign investment, but does not want to make a penny from India.
Indian officials have been promoting to the outside world that India has a rich population resources and a vast and untapped market, and has unlimited development prospects in India.
If there is really foreign capital foolishly believed, into India, the Indian government and other foreign enterprises develop well, began to use various reasons to sanction and punish enterprises, so that foreign investors complained bitterly, until they withdrew from the Indian market.
This routine has been tried and tested.
In 2008, the Indian tax authorities asked Microsoft to pay Rs 700 crore taxes;
In 2013, Nokia was fined $383 million in a tax dispute in India;
In 2013, India required IBM to pay $866 million in unpaid taxes in 2009
Now that China's mobile phone has a market share of more than 60% in India, it seems that the Indian government has long been eyeing this piece of fat meat.
To be honest, Xiaomi is already the leader among the enterprises going to India.
And millet is really a heart for India, India to upgrade the industry, to afford, to manufacturing, to employment rate, millet for the Indian market, is a great cooperation.
The result is not the same, it is inevitable to close the door and hit the dog, let alone other companies!
Basically, as long as foreign capital enters India, it is impossible not to be wooled by India.
South Korea's Samsung, Japan's Shinkansen are all lessons from the past, the United States Walmart, Microsoft, Amazon have also been wool, Ford directly in India to withdraw factories.
Modi invited Musk's Tesla to set up a factory in India, and Musk also directly declined.
Therefore, India has never had a good business environment, so it has not been able to develop.
You should know that in 1990, China and India's GDP were similar, and now India only has 1/5 of China, not for no reason.
India is indeed a big market, many markets can be regarded as blue oceans, but people do not want to think that even Africa has been developed, why India does not, because come to one, India pit one!
Many people are not not entering the Indian market, but they have long been pit by India.
In terms of business, Indians are also extremely dishonest, and those who do foreign trade know that Indians are rebellious in business, greedy and cheap, which is common for them.
So if you really want to do business with India, you must not see rabbits and do not scatter eagles.
Either the full payment will be shipped first, or as much as the payment will be sent, otherwise it will be empty of money.
There was once an Indian scholar who said that India is like an onion, and Westerners always think that after this layer of skin is peeled off, there will definitely be fruit that can be picked, but in fact, it is only smoked by the onion with tears, and there is nothing in it after peeling....
Some netizens also said that doing business in a "democratic" country like India should vigorously engage in NGOs, bribe Indian officials, hire Indian rebels, and invest in two directions between India's ruling party and opposition party.
What do you think about this?