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News In Brief Business and Economy

Chinese Phone Giant Honor Withdraws Team From India

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Chinese Phone Giant Honor Withdraws Team From India
26 Jul 2022
5 min read


News Synopsis

Chinese smartphone manufacturer Honor has withdrawn its staff out of India due to increasing tensions in the region and an intense investigation of Chinese manufacturers of smartphones, said Honor's chief executive officer, Zhao Ming. Providing information, Zhao stated that the firm's Indian business will remain under the management of local partners and continue to operate but it'll take the "very prudent method of operation".

Chinese smartphone manufacturers like Vivo as well as Oppo have been under increased regulations from India's central authorities because of alleged irregularities and tax fraud.

The last month this month, last month, the Enforcement Directorate (ED) raided the offices of Vivo and the associated businesses and frozen their bank accounts in the event of the suspicion that they were involved in money-laundering. The ED has been accusing Vivo of disrupting the financial system of India and undermining its sovereignty. The Directorate of Revenue Intelligence (DRI) identified customs duty evasion totalling nearly 489 crores of rupees by the Oppo's Indian branch on the 13th of July.

In the year 2018 when it was at its highest, Honor held a 3 percent of the market in India. It was pushed from the top 5 companies after its US government imposed harsh sanctions against its former parent company, Huawei.

TWN In-Focus