The last few years have definitely not been good for India-China relations. There was armed tension on the border between the two countries, and this cast an unmistakable shadow on their mutual trade and economy. India has banned a number of Chinese apps on some occasions for security reasons.
In addition, major Chinese electronics brands are also under scrutiny for alleged tax fraud and financial misconduct. It started with Xiaomi. Oppo and Huawei then followed suit as they also came under the radar of Indian tax detectives.
And earlier this month, the Execution Directorate invaded several premises belonging to the Chinese brand Vivo. The searches yielded large sums of unaccounted for money and even gold bars — it’s not common to find gold in smartphone companies. The enforcement agency has so far received information about money laundering worth Rs 10,000 crore during the raids, it is alleged.
Amidst this scenario comes news that Chinese smartphone brand Honor, formerly under Huawei, is moving its team out of India.
Maybe Chinese companies are just arrogance
According to Chinese media reports (opens in new tab), who quoted Honor chief executive Zhao Ming as saying Honor is leaving for “obvious reasons”. This is a bit puzzling, but the implied suggestion is that the company was feeling the heat under the current circumstances in India.
But since Indian authorities, backed by laws and legal procedures, filed lawsuits against Chinese companies, the media in Beijing has been screaming that doing business in India was difficult. But Indian officials have said Beijing’s claim is naive, as Chinese companies have sued only because of the violations committed. He can’t play the victim card, is their claim.
Returning to Honor, the company will nominally exist and its operations will be managed by local partners. While Honor officials are pointing the finger at the current state of the Indo-China relationship, it seems like an easy reasoning. A long time ago, Honor had stopped its operations in India. The company went into a shell as it was not able to make much headway in the face of competition. last of the company official tweet (opens in new tab) of its identifier in India was in March 2022. That means it has been close to being extinct for several months now. You could say he’s just using the occasion now as an excuse to trumpet his departure.
For the record, Honor has brought products like Honor smartphones, Honor Watch ES, Honor Tablet 5, Honor Watch GS Pro, Honor MagicBook 15 and more. None of them, as it happened, managed to make a big mark on the Indian market.