Investigation Recommended for Xiaomi’s Business in India Amid Alleged Irregularities

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India’s Serious Fraud Office has recommended an investigation into Xiaomi’s business practices in the country. The recommendation comes amidst allegations of irregularities in Xiaomi’s business model and compliance with foreign investment law. The move could heighten scrutiny on the Chinese smartphone maker, previously a top-selling brand in India but now facing market share decline due to stiff competition from Apple and Samsung. The investigation is proposed to look into the movement of funds and whether Xiaomi obtained mandatory investment approvals as required, especially after India increased scrutiny of Chinese investments following border clashes in 2020. The government is currently reviewing…

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