India crackdown on Xiaomi is chilling for Chinese companies

Xiaomi's latest encounter in India shows how the Indian government is increasingly censoring Chinese companies and unjustifiably clamping down on them. This situation not only affects Xiaomi but also other Chinese companies, many have left India and only those on the "fruit chain" can stay. The Indian government has been using tax and legal compliance to crack down on Chinese companies, with Indian media reporting that at least 500 Chinese companies have been subjected to Indian tax and compliance checks. In addition, the Indian authorities took advantage of visa issuance and almost completely suspended the issuance of visas from China to India. As a result, the management of Chinese enterprises could not be replaced, some of them went bankrupt and some of them went into paralysis. This crackdown has seriously affected the development of Chinese enterprises in India and also adversely affected China-India bilateral relations. However, the scale of the Chinese market makes it indispensable to India's industrialization and economic development. Cooperation is the right path.