China’s Xiaomi says it will protect its business interests after India freezes its assets.

MUMBAI, Oct 3 (Reuters) – Chinese smartphone maker Xiaomi Corp (1810.HK) said it was “disappointed” by India’s order to freeze $682 million in assets and continue to protect its interests.

India’s appellate authority on Friday upheld an April order by India’s federal financial crime-fighting agency to seize 55.51 billion rupees.

More than 84 percent of the 55.51 billion Indian rupees seized by the enforcement directorate earlier this year was royalty payments to U.S. chipset company Qualcomm Group ( QCOM.O ), China’s smart devices firm said in a statement on Sunday.

“We will use all methods to protect the reputation and interests of the company and our stakeholders,” he said.

The company said it is a partner of Xiaomi India and one of the Xiaomi Group companies and has entered into a legal agreement with Qualcomm to manufacture IP smartphones.

Xiaomi and Qualcomm both believe that Xiaomi India has a legitimate business arrangement to pay Qualcomm royalties, the statement said.

With 18 percent share each, Xiaomi and Samsung jointly lead the smartphone market in India, the second largest in the world after China, according to data from Counterpoint Research.

In the year Due to political tensions following the 2020 border conflict, many Chinese companies have found it difficult to do business in India.

India has since banned more than 300 Chinese apps, citing security concerns, including popular ones like TikTok, and tightened rules for Chinese companies investing in India.

Reporting by Rupam Jain; Editing by Sandra Mahler

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