China firms face fresh India curbs

The Indian government has put forward a new proposal that mandates Chinese smartphone manufacturers like Xiaomi (1810), OPPO, and Vivo to appoint local individuals as chief officers, according to local media.

China-based companies such as Oppo, Vivo, Xiaomi, and others have been requested to include Indian equity partners and appoint Indian individuals in key positions, as discussed during a meeting between company executives and Indian government representatives, sources told The Economic Times.

The news followed a report that India's Enforcement Directorate has issued notices to Xiaomi, Deutsche Bank, HSBC (0005) and Citigroup over alleged illegal remittances to the tune of 55.51 billion rupees (HK$5.29 billion) made by the smartphone giant to foreign entities. The funds have been frozen since last year.

Xiaomi's shares dipped 0.73 percent to HK$10.86 yesterday.