"Xiaomi's Struggle: Navigating India's Scrutiny and Supplier Reluctance"

Xiaomi has expressed concerns to the Indian government about smartphone component suppliers being hesitant to set up operations in India due to the heavy scrutiny of Chinese companies. The company, which has the largest share in India's smartphone market, is seeking manufacturing incentives and lower import tariffs for certain smartphone components. India has increased scrutiny of Chinese businesses since a 2020 border clash, leading to regulatory challenges for Chinese companies operating in India. Xiaomi's letter highlights the ongoing struggles faced by Chinese companies in India and calls for confidence-building measures to encourage component suppliers to establish operations locally.