Chinese Mobile Companies Directed to Induct Indian Equity Partners

The Central Government has directed companies including Xiaomi, Oppo, Realme and Vivo to induct Indian equity partners in their Indian operations. These directions were issued by the Ministry of Electronics and Information Technology (MeitY) and conveyed to these Chinese brands as well as the Indian Cellular and Electronics Association (ICEA) at meetings recently held by the Ministry.

These meetings were conducted on account of the allegations of large-scale tax evasion and financial impropriety levelled against Chinese mobile brands. Recently, the Enforcement Directorate initiated legal action against many Chinese smartphone manufacturers on charges of tax evasion and fraudulent remittances.

Hence, the said companies have been asked to appoint Indian nationals in top roles like the Chief Executive Officer, the Chief Financial Officer, the Chief Technical Officer, etc. Apart from this, the government has also given other directions such as increasing manufacturing through joint ventures with Indian businesses, relying on Indian partners for distribution, etc.