Beijing has urged India to maintain a fair, just and transparent business environment for foreign companies after media reports that the Serious Fraud Investigation Office (SFIO) may probe Xiaomi's operations in India. The Chinese Foreign Ministry spokesperson, Guo Jiakun, made the appeal at a press briefing when asked about the reports.
"I am not aware of the specific situation," Guo said, adding that China hoped India would provide a "fair, just, transparent and non-discriminatory business environment" for companies from all countries.
Context of the reported scrutiny
The reported SFIO action comes as Xiaomi — once a dominant player in India’s smartphone market — has experienced both regulatory challenges and a decline in its commercial position. Industry data cited in recent reports show Xiaomi’s share of the Indian mobile market has fallen to around 13 per cent, placing it fourth in the market, down from about 19 per cent previously, according to Counterpoint Research as reported.
Financially, Xiaomi's India business is reported to have generated about $2.52 billion in 2025, a figure characterised in reporting as roughly 40 per cent lower than the level recorded three years earlier. The combination of softer sales and renewed regulatory attention has renewed scrutiny of the company’s affairs in India.
Regulatory backdrop and prior action
Reports note that concerns over Xiaomi’s financial conduct are not entirely new. In 2022, Indian authorities froze an amount cited as around ₹55.51 billion (approximately $584 million) in the firm’s Indian bank accounts over allegations involving illegal remittances; Xiaomi denied those allegations, according to earlier reporting.
Media accounts now indicate that complaints and information prompted the SFIO to consider further scrutiny. The SFIO is a central agency empowered to investigate serious corporate fraud; the details of any proposed inquiry, its scope or timing were not available at the time of the Foreign Ministry comment.
- Market share: Reported drop from about 19% to 13% (Counterpoint Research).
- Revenue: Reported India revenue of $2.52 billion in 2025, about 40% lower than three years earlier.
- Earlier regulatory action: Freeze of roughly ₹55.51 billion in 2022 over alleged illegal remittances.
Diplomatic and commercial implications
Beijing framed its comments within a broader appeal for stable economic and trade ties, describing China-India economic cooperation as "mutually beneficial and win-win in nature," as reported. The statement reflects Beijing’s interest in ensuring Chinese businesses operating overseas are treated under consistent legal and regulatory norms.
For India, the scrutiny of a prominent multinational underscores the balance regulators seek between enforcing corporate compliance and maintaining an investor-friendly climate. The public reports of both past account freezes and potential fresh investigation into a major smartphone maker are likely to be watched closely by other foreign investors and trade partners.
| Item | Reported figure |
|---|---|
| Market share (India) | ~13% (reported), down from ~19% |
| Revenue in India (2025) | $2.52 billion (reported) |
| Funds frozen (2022) | ₹55.51 billion (reported) |
Neither the SFIO nor Xiaomi provided detailed public comment linked to the latest media reports at the time of the Foreign Ministry’s statement. The Chinese spokesperson said he was not aware of the specific details prompting the possible SFIO action.
Observers say that how Indian authorities proceed — ensuring investigations follow due process while communicating findings transparently — will carry weight for corporate governance expectations and bilateral commercial relations. At the same time, companies operating in India face heightened attention on compliance, transfer pricing, remittances and local reporting, issues highlighted by prior actions and public reporting.
The outcome of any formal SFIO inquiry, if instituted, could have implications for Xiaomi’s operations and corporate conduct in India, as well as for broader investor sentiment. For now, Beijing’s appeal and the available market and financial figures frame the issue as one that touches legal enforcement, commercial competitiveness and interstate economic relations.
