Beijing has urged India to ensure a fair and transparent business environment for Chinese companies as reports emerge of a proposed SFIO investigation into Xiaomi. The scrutiny adds another challenge for the smartphone maker, which has faced regulatory pressure and a sharp decline in its share of India’s mobile market.
China has called on India to maintain a fair and transparent business environment for foreign companies, as reports of a proposed investigation into Xiaomi by India’s Serious Fraud Investigation Office (SFIO) emerge. Beijing said economic and trade ties between the two countries should continue to benefit both sides.
Chinese Foreign Ministry spokesperson Guo Jiakun addressed the matter at a press briefing on Thursday after being asked about reports concerning the SFIO’s proposed scrutiny of Xiaomi. Guo said he was not aware of the specific details, but stressed Beijing’s broader expectations for Chinese businesses operating in India.
“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.
He also described China-India economic and trade cooperation as “mutually beneficial and win-win in nature”.
The reported SFIO action comes at a difficult time for Xiaomi in one of its key overseas markets. The company’s position in India’s smartphone sector has weakened considerably in recent years. According to Counterpoint Research, Xiaomi now holds around 13 per cent of the market, placing it fourth, compared with a 19 per cent share previously.
Its India business has also recorded a sizeable decline in revenue. Xiaomi generated around $2.52 billion in India in 2025, reportedly about 40 per cent below the level recorded three years earlier.
More from TechThe latest scrutiny follows an earlier financial controversy. In 2022, Indian authorities froze around Rs 55.51 billion ($584 million) held in Xiaomi’s Indian bank accounts over allegations involving illegal remittances. Xiaomi denied the allegations.
According to reports, the latest SFIO investigation was prompted by complaints and information received through the Commerce Ministry. The agency has reportedly prepared a 21-point framework setting out the proposed scope and methodology of the investigation, with company executives potentially being summoned if required.
The inquiry could also examine complaints from retail sellers over alleged exclusive arrangements between e-commerce platforms and selected sellers. Such agreements could come under scrutiny in relation to India’s foreign direct investment rules.
The reported investigation has yet to establish wrongdoing by Xiaomi. Any findings would depend on the outcome of the SFIO’s examination and the evidence gathered during the process.
