China Asks India To Treat Chinese Firms Fairly Amid Xiaomi's Threat Claim: Report

China has called on India to ensure that Chinese firms in the country are treated fairly amid Xiaomi India's claims that its senior executives were threatened with "dire consequences" over alleged illegal remittances.

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New Delhi: China has called on India to ensure that Chinese firms operating in the country are treated fairly amid Xiaomi India's claims that its senior executives were threatened with "dire consequences" if they did not present statements as "dictated" by Enforcement Directorate (ED) over alleged illegal remittances, the media has reported.

A spokesperson from the Chinese foreign ministry said that Beijing resolutely upheld Chinese companies' rights and interests, according to a report by news agency Reuters. "China hopes India will provide a fair, just, non-discriminatory business environment to Chinese companies with investments and operations in India, carry out investigations in compliance with the law, and enhance international investor confidence," spokesperson Zhao Lijian was quoted as saying in the report.

Handset maker Xiaomi had filed a writ petition filed in the Karnataka High Court alleging that two of its key executives, including former India head Manu Jain have been threatened with "dire consequences", physical violence and damage to their career prospects if they did not present statements as "dictated" by the agency.

The Enforcement Directorate has, however, rejected the allegations. The federal agency has said that Xiaomi India's charges were an afterthought.

The Enforcement Directorate, in April, had seized funds worth over Rs 5,551 crore of Chinese mobile manufacturing company Xiaomi India have been "seized" for violating the Indian foreign exchange law. The seizure of funds has been done under relevant sections of the Foreign Exchange Management Act (FEMA) after a probe was launched by the federal agency against the company in connection with alleged "illegal remittances" sent abroad by the Chinese firm in February.

Xiaomi started its operations in India in 2014 and started remitting the money from the next year, it said, according to a PTI report.