"Xiaomi's India Suppliers Nervous Amid Chinese Firm Scrutiny"

Xiaomi has expressed concerns to the Indian government about the reluctance of smartphone component suppliers to set up operations in India due to heavy scrutiny of Chinese companies. The company, which holds the largest share in India's smartphone market, has requested manufacturing incentives and lower import tariffs for certain smartphone components. This comes amid increased scrutiny of Chinese businesses in India following a 2020 border clash, with Indian authorities freezing over $600 million in Xiaomi assets and accusing Chinese smartphone company Vivo of breaching visa rules. Xiaomi's letter highlights the challenges faced by Chinese companies in India and calls for confidence-building measures to encourage component suppliers to establish operations locally.