Text|Ming Yue is deceased
Editor|Bright Moon is deceased
preface
On June 9, some media reported that Xiaomi's Indian company was suspected of illegally transferring assets, and fined Xiaomi nearly 4.8 billion yuan.
Such a "pig killing plate" incident, not only Xiaomi has experienced, but other foreign companies and industries that enter the Indian market will be severely "pitted" by India.
So why did India impose such a high fine on Xiaomi, and why all companies could not stay in India.
The development of Xiaomi in the Indian market
Xiaomi is also a well-known brand in China, and it also has a lot of influence in the Chinese market, with the development of smart phones, there are more and more mobile phone brands, and there are many technologies that can be used.
The two giants in China's mobile phone industry are Xiaomi and Huawei, which have always been very competitive brands in the market, and almost most people have mobile phones in their hands.
As long as you can see Xiaomi, there will be Huawei, with the change of the market, Xiaomi has always been influential in domestic brands, but also loved by many people.
Since Xiaomi decided to enter the Indian market, Xiaomi has got a good contrast when it first entered India, and it can be said to be the first place in the Indian mobile phone market.
Xiaomi's decision in 14 years to open up the Indian market and develop new sites in India was that Xiaomi showed enough sincerity to not only hire Indians for executives, but also Indian businessmen for the supply chain, and even the staff in the workshop were Indians.
It is precisely for this reason that Xiaomi has successfully promoted its listing in India, and at the same time helped increase the employment rate of Indians, while also providing them with more jobs in India, so that those who do not have the opportunity to earn money have better opportunities.
Xiaomi has also implemented a comprehensive indigenization in India, and in 17 years, it also announced that it would establish nearly 100 Xiaomi companies in India, and there were 7 workshops in India, which once became the highest share of the Indian mobile phone market.
Just some time ago, Xiaomi also decided to continue to expand market planning and technology research in India, and also promote the growth of India's localized supply chain, but this "plan" was "poured cold water" by the Indian government before it began to be realized.
The Indian government confiscated nearly 5 billion yuan on the grounds that Xiaomi Company evaded taxes in India, which can be said to be Xiaomi's earnings for nearly ten years, and also froze the funds in Xiaomi's account on the grounds that Xiaomi was suspected of illegally sending foreign exchange funds.
To say that the "pig killing plate" has to be India, such things are not once or twice in India, sitting on the fruits of other people's labor, India has a hand, almost as long as there are influential or profitable foreign companies in the Indian market, India will find reasons to put their profits into their own pockets.
This time millet is all planted in the hands of India, obviously you can go forward, but India still finds a reason to withhold the money, millet also feels wronged, obviously it has always been legally operated, but to use the excuse of tax evasion to pay the fine.
This situation is not once or twice, according to the explanation given by India, it can be seen that Chinese companies have all been slaughtered in India, not only Xiaomi, but even OPPO and ViVO have all been slaughtered by India.
According to the explanation given by India, some netizens have made an analysis, in addition to making Chinese companies pay fines and tax deductions, India has also made a "smart" means, unlike the previous direct "take money" practice.
The Indian government also requires the top management of these companies to change all leadership positions to Indians, just because they have opened companies in India, so they must use Indians.
India's unorthodox approach also surprised people, and even some people complained that India was losing money and seeing that money could not move, and India even asked to take a stake in Chinese companies, feeling that those people were not as good as Indians in managing shares.
India has also put forward very excessive demands on enterprises in terms of shares, and some people even say that India wants to control China.
The "face" of the Indian government
The Indian side said that Chinese enterprises in India must let India's shares account for more than 51%, which is equivalent to directly controlling these enterprises, of course, India also has the next step, but if anyone does not agree, they will stop the Indian supply chain, so that those companies can not establish their own supply chain in India.
India's approach is already equivalent to overt and covert "robbery", which is equivalent to wanting to open the market in India, you must listen to India's "command", some netizens also ridiculed that opening a company in India is equivalent to working for India, because regardless of good or bad development, India always has a reason to "grab all the funds earned by the enterprise".
India will have its own set of "means" for those enterprises that are "stationed" in the Indian market, no matter who comes to try to make themselves eat profit dividends, if they do not succeed, they will also find other excuses to take away the money you earn in India.
And what is India's practice for, which makes some people wonder if India is doing this to steal the core technology within the company, and then wait until it masters it, and then kick out those companies that come to India to explore the market.
In this way, India can successfully make itself a more powerful country, Xiaomi has been crawling in India for so many years over the years, and finally earned basically into India's pocket.
Just like the previous enterprises, although the development prospects of the Indian market are great, but if the control is not possible, it will all enter the pocket of the Indian government, do business in India, do business, basically bamboo basket empty, earn not much loss.
The Indian government has played a game of chess for those enterprises that enter the Indian market from outside, only they can control the chess, and now India has also become a "foreign company eliminator" among other people, as long as they come to India to do business, everyone can see their true face.
However, India's ambitions are far more than that, what they want is to control the top management of Chinese companies in one fell swoop, all become Indians, this is the real purpose of India, obviously go to India enterprises will eventually be "engulfed", but there are still companies willing to go to India to develop.
This may be why India dares to keep pinching the capital of those companies, because there are constantly new companies flowing in, and India is doing this because some companies have been conniving at such things.
In the past, OPPO was also in this situation in India, and India still used the same means to make the company have no foothold in India.
Other businesses in the Indian market
At that time, India squeezed OPPO, Xiaomi and even various Chinese companies' factories in India, accusing OPPO of tax evasion and tax evasion, and was also harvested 3.7 billion yuan by India.
And those manufacturers who have operated in India also said that India is not only for Chinese companies, India is aimed at all companies that come to do business there, and almost all companies will let India "pit it".
Google's development in the Indian market can be considered good, but India also does not give the United States face at all, and Google was also fined $162 million in India, which did not give the United States face at all.
There is not even a reason to punish Google, you must say a reason, then it may be Google tax evasion, after all, this has always been the reason India uses to squeeze foreign companies.
At that time, the unique cars of the United States also entered the Indian market, and at that time they boasted that India would become the world's largest export place for automobiles, but they did not expect to be directly poured cold water by India.
At first, Ford had no reason to let them squeeze in India, because India had its own car brand, because the development of Ford was too strong, so the two brands had been competing.
But after all, it is in India, as long as India makes a slight stumbling block can make Ford unable to operate in the Indian market, Ford Motor probably knows this and decided to launch the Indian market in 21 years.
In 1995, Ford decided to enter the Indian market, and in 25 years, it invested nearly $2 billion in India, which is also the entire net worth in the Indian market.
But since India has a new tram brand of its own, it has become a competitor to Ford Motor, and most of Ford's assets have been transferred, which has also discouraged other companies that want to enter the Indian market.
Therefore, Ford began to break with India, thereby withdrawing from the Indian market, it is reported that Ford has been crawling in the Indian market for so many years, but only occupies 2% of the market share, which is really pitiful.
Ford's point of view, the "cruel words" he put down at the beginning were also shattered, originally wanted to open up the Indian market, but did not expect that in the end he could only withdraw, which also broke Ford's "sweet dream" in India.
epilogue
India has already lost the trust of those investors by doing so, and even few new companies are stationed in India, everyone knows the face of India, which also has netizens laughing that "even alien spacecraft passing through India, that has to charge some tolls."
And many companies have always been very legal and have always followed the rules, but in the end they can always be labeled as "tax evasion" by India, so that they can take out a lot of money to fill this "hole".
India as a "graveyard of foreign enterprises", it is simply difficult to say, they all admire the nickname of India, and there are really people who have come out with a paragraph exclusive to India: "India earns money and spends India, and I want to take it home."
There are many, many such things in India, and even if so, there will be people who are willing to enter the Indian market and continue to show their "ambitions", and they believe that they can conquer the Indian market.
However, even those companies that want to enter the Indian market are estimated to be attentive, after all, they do not know what India will do at any time, so they will not be taken care of, but if India has to bring down the development of a company in India, it is useless no matter how good it is.