India and China are at odds again, but it is not on the border. India is investigating a local subsidiary of Chinese smartphone maker Xiaomi for alleged illegal royalty payments to foreign organizations. Xiaomi has denied any wrongdoing and has complained in court that India’s financial crime agency has used threats of physical violence to obtain confessions, according to Reuters.
The relationship between Asia’s largest and third largest economy is nothing short of sharp. But the big drama hides a significant two-way dependence on both sides – especially in the mobile phone sector. This latest dispute is unlikely to ruin a mutually beneficial relationship unless Indian courts take an openly political stance against Xiaomi.