Once again. Chinese phone maker Xiaomi robbed $676 million by Indian government

[Rusty2]

yes, they did. but the self-serving politicians exacerbated the situations further by blaming others for their own incompetence. bhutto made it look as if the industrialists were the reason that the country was impoverished. dude didnt know that it was the lack of said industry and exports that led to this situation and did nothing to improve it. but its way easier to setup and blame a bogeyman. the jackass destroyed whatever we had through nationalization, but the thought lingered that its the rich guys who are stealing from us.

again, I don't disagree.
But Bhutto was a symptom of the problem, not the cause.
The British designed our society to that they can take all the wealth. They de-educated us and placed a tiny local elite above us to keep us on check. Once they left, that elite did what it was designed to do, keep the people down while they extracted wealth. Ayub, Bhuto, Zia, Zardari, etc are all doing what they have been designed to do.
Ultimately, we need to dismantle this system and create a society that is equitable.
This probably won't happen as we need to take on the GHQ, the political class, the feudal class and most importantly, the mullah class.

 

[Song Hong]

again, I don't disagree.
But Bhutto was a symptom of the problem, not the cause.
The British designed our society to that they can take all the wealth. They de-educated us and placed a tiny local elite above us to keep us on check. Once they left, that elite did what it was designed to do, keep the people down while they extracted wealth. Ayub, Bhuto, Zia, Zardari, etc are all doing what they have been designed to do.
Ultimately, we need to dismantle this system and create a society that is equitable.
This probably won't happen as we need to take on the GHQ, the political class, the feudal class and most importantly, the mullah class.

Bhutto family is richest.

They should donate first.

Bhutto, Sharif rules Pakistan till today.

 

[Skull and Bones]

But the West and US in particular need India to counterbalance China.... Otherwise, the US would not know where India is on the map.

90% of Americans don't know where Wyoming is. Gandu.

 

[Yaoudelizard]

Indians are known scammers, if you hear the accent just walk away.

 

[Bilal9]

India is not just robbing Xiaomi, India is robbing everyone including USA.

Stupid China tycoon still believe they can make monies in India.

India actually aim to attract FDI and start confiscating.

This has been their selfish (and immature) business philosophy since the 1950's.

They have attracted foreign companies with the false promise and pretext of making millions from the Indian market, only to cancel contracts with them after a few years. No one buys good products in India, their market is full of people looking for cheap garbage. So those aforementioned promises to foreign investors of making bumper profits is false.

Examples are legion (following is a list of a few motorcycle and scooter mfrs. which is a large business segment in India)

• Hero Motocorp (Honda licensee)
• Bajaj Auto (Kawasaki and earlier, Vespa licensee)
• Lohia Machines Limited LML (Piaggio licensee)
• Automobile Products of India (API) (Lambretta licensee)
• TVS (Suzuki Licensee)

In each of these cases, Indian companies put Indian politicians and Indian courts in their own pockets using bribery and cheated out the foreign collaborators after getting ToT from them. These people have Ph.D's in cheatery and fraud, ask us (we are their neighbors and longtime 50 year sufferers).

Instead of verbal complaints, Chinese govt. should find alternate countries to do business with, such as Turkey, Pakistan, Bangladesh, Indonesia and Malaysia - rather than India. The business folks of these D-8 countries do not have the cheatery and fraud mentality of Indian businesspeople. Going forward - this should be the guiding principle of excluding India from ASEAN business.

Indians think they can survive by themselves in their self-contained moribund economy at 3% "Hindu Rate" of growth. Give them a taste of their own medicine. Stop helping India with trade - give them a 10% hike for anything to be bought by Indian businesses.

The first casualty will be their cellphone "assembly" industry. 99% of the parts come from China, we will see where they get their cheap cellphones from then - which they love so much.

 

[Paitoo]

So I don't know thing about this case, what are both sides arguing?

Keeping aside all the usual trolling, here are some case facts for anyone who is interested.

1. Xiaomi India gets mobile phones manufactured in India through contract manufacturers, one of them being Foxconn
2. Xiaomi India has been paying royalty to Qualcomm USA, on the grounds that they used Qualcomm's proprietary technology in the phones manufactured in India
3. Royalty, like any other expense is deductible for tax purposes and thus lowers the tax liability of Xiaomi India
4. As per Indian law, a company is required to have a royalty agreement in order to make royalty payments to an entity outside India. This is governed by the Foreign Exchange Management Act (FEMA), which is also equivalent to a court.
5. Xiaomi India was making its royalty payments through Deutsche Bank. The bank had originally asked Xiaomi to share the royalty agreement in order to release the payments, but Xiaomi India declined citing confidentiality reasons.
6. FEMA court sent a legal notice to Xiaomi India, stating it was in violation of FEMA rules. However, since FEMA has no enforcement powers, another body called the Enforcement Directorate moved to freeze Xiaomi India's 4 bank accounts.
7. Xiaomi India officials say that no separate agreement exists with Qualcomm for royalty payment, and they released such payments based on instructions received from Xiaomi HQ in China.
8. Now in comes the Income Tax department. They claim that Xiaomi India is not manufacturing these phones themselves, and is in effect only a reseller, buying completely boxed phones from the likes of Foxconn, therefore it is not eligible to claim royalty expense as deduction. Prima facie this sounds fine, otherwise every tom dick and harry reseller with a shop in Lamington road will start claiming royalty deductions.
9. However, someone will claim royalty expense, and to me it is not clear if Foxconn instead is claiming royalty deduction. I could not find any information in public domain. If they are, then Xiaomi has no right to claim it, because it amounts to double accounting of expense. If Foxconn is not claiming royalty deductions, then Xiaomi India is entitled to claim it. The FEMA issue however will remain that there is no agreement between Xiaomi India and Qualcomm. The absence of such an agreement is in itself not an illegality, but Xiaomi India will have to prove that the phones in India are indeed using Qualcomm's proprietary technology.
10. Xiaomi India has also raised objection to the freezing of bank accounts, on the grounds that it has been in India for a long time and is not a fly by night operator, so ED's actions were excessive.
11. In terms of court decisions, it has been ping pong. The Karnataka High Court quashed the ED order of freezing bank deposits, while retaining the ban on further royalty payments until the matter is settled.
12. After the quashing of the order, Xiaomi has 'allegedly' resumed royalty payments and therefore ED filed another petition in the High Court which has been upheld. This is the news that you see in the OP.

It is likely that this case will go to Supreme Court. If Xiaomi India loses there, it will go to some international tribunal. It should, if it believes there is no deliberate attempt to evade tax. Tax issues can always arise due to different understanding of the rules. In defence of Indian authorities, it is not possible to say if the parent company in China is paying all the royalties to Qualcomm through some kind of master agreement, or the burden is passed down to their local subsidiaries. Both are reasonable arrangements in business, but next to impossible to verify by Indian agencies, especially given the tense relations between the 2 countries. Qualcomm itself can throw some light on this, but they have refused to comment on the matter. Indian authorities cannot force them to share such information as there is no case against Qualcomm.

Interestingly, payment for IP for use in manufacturing is considered an import and therefore attracts customs duty, which Xiaomi has not reported. So even if they win the income tax and FEMA cases, they will be in the net of the customs department automatically.

 

[Song Hong]

Actually China did confiscate foreign investment also -- but not to the extent of India.

China got majority stake in Singapore funded Suzhou Industrial park. Soon, it seems Suzhou park will be very successful.

This park if allow to prosper, will result to Singapore owning on hundreds billions dollar of properties. Then somehow， China make Singapore sell back suzhou park by threatening to build yet another park nearby and divert all investment to China own park.

When China is now majority stakeholder, Suzhou park took off.

Suzhou Industrial Park - Wikipedia

en.wikipedia.org

 

[etylo]

Actually China did confiscate foreign investment also -- but not to the extent of India.

China got majority stake in Singapore funded Suzhou Industrial park. Soon, it seems Suzhou park will be very successful.

This park if allow to prosper, will result to Singapore owning on hundreds billions dollar of properties. Then somehow， China make Singapore sell back suzhou park by threatening to build yet another park nearby and divert all investment to China own park.

When China is now majority stakeholder, Suzhou park took off.

Suzhou Industrial Park - Wikipedia

en.wikipedia.org

Why China should allow a foreign American lapdog Singapore to own hundreds of billions dollars properties in a city in China ? Those officials in charge giving away those rights to SG in the first place must morons or corrupt. I can't see any independent big country will tolerate such arrangements.

 

[kankan326]

Actually China did confiscate foreign investment also -- but not to the extent of India.

China got majority stake in Singapore funded Suzhou Industrial park. Soon, it seems Suzhou park will be very successful.

This park if allow to prosper, will result to Singapore owning on hundreds billions dollar of properties. Then somehow， China make Singapore sell back suzhou park by threatening to build yet another park nearby and divert all investment to China own park.

When China is now majority stakeholder, Suzhou park took off.

Suzhou Industrial Park - Wikipedia

en.wikipedia.org

Misleading information. The contract signed by both countries required Singapore gradually to reduce its share. No country would allow its territory to be ruled by other country for ever. Plus, Singapore has already gained huge amount of money from this project.

 

[nahtanbob]

Xiaomi is a slave of India. All profit it has made in India market since it invested in India 10 years ago, was harvested by Indian government. No one here in China pities Xiaomi.

https://www.scmp.com/tech/article/3...676-million-xiaomi-amid-sour-india-china-tech

this is rich coming from a CCP bot given all the games Chinese government plays with multinationals

 

[etylo]

this is rich coming from a CCP bot given all the games Chinese government plays with multinationals

Yeah, this is disguised Indian fart.

 

[StraightEdge]

Now compared to all the trade deficit India has with China, this is pittance.

 

[Song Hong]

Misleading information. The contract signed by both countries required Singapore gradually to reduce its share. No country would allow its territory to be ruled by other country for ever. Plus, Singapore has already gained huge amount of money from this project.

View attachment 928370

If GoC owns a majority of stake at after certain time frame, GoC will be full speed ahead promoting Suzhou park.

What is the causative factor that make a differences and change of mind before and after?

It must be China bought majority of stake at good price level.

Cant be nothing has happen.


*********************


The park ran into trouble when local officials began building Suzhou New District (SND) industrial park, which many news outlets have seen as a direct competition to the SIP. As the Suzhou city government had only a minority 35 percent stake in the SIP, while they had a major stake in SND, the city government largely ignored SIP and concentrated on promoting the SND instead.

Suzhou Industrial Park - Wikipedia

en.wikipedia.org

Why China should allow a foreign American lapdog Singapore to own hundreds of billions dollars properties in a city in China ? Those officials in charge giving away those rights to SG in the first place must morons or corrupt. I can't see any independent big country will tolerate such arrangements.

The Indian think likewise.

 

[MajesticPug]

India is not just robbing Xiaomi, India is robbing everyone including USA.

Stupid China tycoon still believe they can make monies in India.

India actually aim to attract FDI and start confiscating.

That's what India does best and the reason India is still a s h i t hole because no company could invest long and hard in India. In the US, Biden was called the exterminator of dollar assets. But India has had many Biden's in the last half century. Go figure.

Poor semi literate Chinese labourers will touch their knob on Tata "stealing" Wistron's factory in India but feign ignorance (not out of malice, it's pure ignorance of the chauthi fail) on Luxshare "stealing" Wistron's factory in China.

Poor Chinese trying to catch up to India's techs and wealth.

 

[Song Hong]

The biggest difference is that the Indians only catch small fish.

I mean they should allow foreigners to receive many benefits in small projects, and only confiscate foreign assets in large projects, up to hundreds of billions of dollars.

Confiscation of foreign assets in all projects will set a bad precedent and make foreigners wary before investing in India.

I agree with some Chinese members that you cant let foreigners owns that much asset -- nevertheless.

This is really exhorbitant to Singapore -- really scandalous.

A lot of China forum mis-inform the situation. I guess it is really inconvenient to let citizen know about the truth,