Chinese phones of less than 12 thousand can be banned, the government is planning to shock the dragon

 

According to the Bloomberg report, India wants to ban the phones of Chinese companies costing less than 12 thousand rupees. If this happens then many brands including Xiaomi Corp will get a big blow.

Chinese mobile phones are the largest sellers in India. One reason for this is the cheap price of these mobile phones. Chinese mobile phones have a strong hold on the Indian market due to the availability of a lot of features at affordable prices. However, now there is news that India is preparing to give another blow to China. India has already banned more than 300 apps from China. Now some phones may be banned in India. In fact, India wants to give impetus to its faltering domestic industry.For this, it wants to ban Chinese smartphone makers from selling phones under 12,000 rupees ($150). According to the Bloomberg report, India wants to ban the phones of Chinese companies costing less than 12 thousand rupees. If this happens then many brands including Xiaomi Corp will get a big blow.

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Why India wants to ban cheap Chinese mobile phones?

Explain that India is the second largest mobile market in the world after China. According to people familiar with the matter, the aim of banning Chinese phones priced below Rs 12,000 is to drive the Chinese giants out of the bottom half of the Indian phone market. Chinese brands like Realme and Transsion (Tecno, Itel, and Infinix) hold the bottom of the Indian mobile market.

 Chinese market stalled, trust in India

If Chinese mobile phones are banned in the entry-level market of India, then Chinese brands like Xiaomi will get a big blow. These Chinese brands have increasingly relied on India to sustain their growth in recent years. This is also because one stringent Kovid-19 lockdown after another in China completely brought their domestic market to a standstill.

According to market tracker Counterpoint, smartphones under $150 contributed one-third of India's sales volume for the June 2022 quarter. In which the share of Chinese companies was 80 percent. Simply put, in the second quarter of 2022, one-third of the phones sold in India were priced up to Rs 12,000. In this too, 80 percent were phones from Chinese companies.

Many Chinese companies are already under investigation

India is already investigating Chinese firms operating in the country, such as Xiaomi and rivals Oppo and Vivo. These companies have been accused of tax evasion and money laundering. The government has previously used unofficial means to ban Huawei Technologies Co and ZTE Corp telecom equipment. Although there is no official policy prohibiting Chinese networking gear.

In Hong Kong, shares of Xiaomi were down in the last minute of trading on Monday. Its shares fell as much as 3.6%. The company's shares have fallen more than 35% this year. However, people familiar with the matter said it was not clear whether Prime Minister Narendra Modi's government would announce any policy to prioritize Chinese companies or announce it using informal channels.