Recently, Xiaomi mobile phones were fined by India at a sky-high price, worth about 4.8 billion yuan, on the grounds that Xiaomi had violated the law and evaded taxes.
But Xiaomi mobile phone responded that all business activities in India are legal and compliant.
In fact, as early as the beginning of this year, India punished Xiaomi's mobile phone, believing that there were violations in the concession fee, and fined about 560 million yuan.
The Indian financial inspection agency has also repeatedly visited Xiaomi's office, finance department and other departments to conduct sudden tax inspections.
It seems that India is frequently targeting Xiaomi mobile phones. But why?
According to statistics, Xiaomi is currently the highest-selling mobile phone brand in India. Since 2019, Xiaomi's share of the Indian mobile phone market has been above 25%.
At the same time, Xiaomi mobile phone has 7 factories in India, with more than 50,000 employees. No matter how you look at it, the existence of Millet has brought huge economic value to India and helped the government solve the employment problem, and the two should be good partners.
However, Xiaomi has developed rapidly since entering India, which has caused the local government to be jealous.
All along, India has wanted to be a second China and become the new world factory. In order to achieve this goal, it is necessary to vigorously develop the country's manufacturing industry.
The vigorous development of Chinese mobile phone companies has seriously threatened the development space of Local Mobile Phone Companies in India and squeezed their profits, so the Indian government is willing to set obstacles for Xiaomi, even if it is to issue sky-high fines, but also to weaken the influence of Xiaomi in the Indian mobile phone market.
It's just that this kind of sky-high fine is not only "unprofitable" to Xiaomi, but also has anti-phagocytic power against the Indian government itself.
Because there is not only one Chinese company in India, xiaomi, and there is not only One foreign enterprise in India. Sky-high fines have a deterrent effect on companies to some extent, but they will also reduce the desire of other companies to invest in India.
Therefore, India should be cautious about using "fines", and cannot be punished with "big penalties, special penalties", otherwise once Xiaomi finds a new country to replace the Indian market, then it is the Indians themselves who suffer losses.