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India seizes $725 million of Xiaomi assets over illegal remittances

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(Last Updated On: May 1, 2022)

India said on Saturday it had seized $725 million from the local bank accounts of China’s Xiaomi Corp (1810.HK) after a probe found the smartphone maker had made illegal remittances to foreign entities by passing them off as royalty payments.

The Enforcement Directorate had been investigating the Chinese company’s business practices over suspected violations of Indian foreign exchange laws.

The financial crime fighting agency said on Saturday it had seized the bank account assets from Xiaomi Technology India Private Limited after finding the firm had remitted the foreign currency equivalent of 55.5 billion rupees to three foreign-based entities, including one Xiaomi group entity, “in the guise of royalty” payments.

The remittance to two other unidentified and unrelated U.S.-based entities was also for “the ultimate benefit of the Xiaomi group entities”, the agency added in a statement.

“Such huge amounts in the name of royalties were remitted on the instructions of their Chinese parent group entities,” the directorate said.

Xiaomi said in a statement issued later on Saturday that it complies with Indian laws and believed its “royalty payments and statements to the bank are all legit and truthful”.

“These royalty payments that Xiaomi India made were for the in-licensed technologies and IPs used in our Indian version products … we are committed to working closely with government authorities to clarify any misunderstandings,” it added.

The directorate’s actions against Xiaomi signal widening scrutiny of the Chinese smartphone maker, whose India office was raided in December in a separate investigation over alleged income tax evasion. Some other Chinese smartphone markers were also raided at the time.

Reuters reported on April 12 that Xiaomi’s former India head, Manu Kumar Jain, had been summoned for questioning as part of the directorate’s investigation.

Jain, who is now a global vice president at Xiaomi based in Dubai, appeared before investigators earlier this month, said a source with direct knowledge of the probe, asking not to be named due to the sensitivity of the matter.

The Enforcement Directorate also asked the company for details of foreign funding, shareholding and funding patterns, financial statements and information of key executives running the business.

Xiaomi was India’s leading smartphone seller in 2021, with a 24% market share, according to Counterpoint Research. South Korea’s Samsung was the No. 2 brand with a 19% share.

Many Chinese companies have struggled to do business in India due to political tensions following a border clash in 2020. India has cited security concerns in banning more than 300 Chinese apps since then, including popular ones like TikTok, and also tightened norms for Chinese companies investing in India.

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Apple loses top phonemaker spot to Samsung as iPhone shipments drop, IDC says

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(Last Updated On: April 16, 2024)

Apple’s (AAPL.O), opens new tab smartphone shipments dropped about 10% in the first quarter of 2024, hurt by intensifying competition by Android smartphone makers aiming for the top spot, data from research firm IDC showed on Sunday.

Global smartphone shipments increased 7.8% to 289.4 million units during January-March, with Samsung (005930.KS), opens new tab, at 20.8% market share, clinching the top phonemaker spot from Apple, Reuters reported.

The iPhone-maker’s steep sales decline comes after its strong performance in the December quarter when it overtook Samsung as the world’s No.1 phone maker. It’s back to the second spot, with 17.3% market share, as Chinese brands such as Huawei gain market share.

Xiaomi, one of China’s top smartphone makers, occupied the third position with a market share of 14.1% during the first quarter, read the report.

South Korea’s Samsung, which launched its latest flagship smartphone lineup – Galaxy S24 series – in the beginning of the year, shipped more than 60 million phones during the period.

Global sales of Galaxy S24 smartphones jumped 8%, compared to last year’s Galaxy S23 series during their first three weeks of availability, data provider Counterpoint previously said.

In the first quarter, Apple shipped 50.1 million iPhones, down from 55.4 million units it shipped same period last year, according to IDC.

Apple’s smartphone shipments in China shrank 2.1% in the final quarter of 2023 from a year earlier.

The drop underscores the challenges facing the U.S. firm in its third biggest market, as some Chinese companies and government agencies limit employees’ use of Apple devices, a measure that mirrors U.S. government restrictions on Chinese apps on security grounds.

The Cupertino, California-based company in June will hold its Worldwide Developers Conference (WWDC), where it will highlight updates to the software powering iPhones, iPads, and other Apple devices.

Investors are closely watching for updates on artificial intelligence development at Apple, which has so far spoken little about incorporating the AI technology into its devices. The company earlier this year lost the crown as the world’s most valuable company to Microsoft (MSFT.O), opens new tab, Reuters reported.

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China launch of relay satellite Queqiao-2 for lunar probe mission successful

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(Last Updated On: April 12, 2024)

China National Space Administration (CNSA) said on Friday its launch of a key signal relay satellite was a “complete success” and it would serve as the communication bridge for its future lunar probe missions for years to come, state media reported.

China launched the satellite Queqiao-2, which was named after a mythological bridge made of magpies, and two miniature satellites, Tiandu-1 and Tiandu-2, on March 20.

Queqiao-2 will be used as a communications bridge between the ground operations on earth and upcoming lunar probe missions on the far side of the moon until at least 2030.

The moon’s near side always faces earth. That means data transfers from the far side are impossible because there is no direct line of sight.

Queqiao-2 researcher and developer Xiong Liang described the satellite as “the main switch” of the whole fourth phase of lunar missions, according to state television CCTV.

“Only when the main switch is flipped on, all the communications can kick off,” Xiong said.

Queqiao-2 will orbit the moon and relay signals to and from the Chang’e-6 mission, which expected to be launched in May. The robotic Chang’e-6 probe will seek to retrieve samples from an ancient basin, acquiring lunar material from the moon’s hidden side for the first time.

Queqiao-2 will also be used as a relay platform for the Chang’e-7 lunar mission in 2026 and the Chang’e-8 mission in 2028.

The functions and performance of Queqiao-2 met mission requirements and it will be able to provide relay communication services for China’s lunar exploration projects and future lunar missions for China and other countries, said the CNSA, according to CCTV.

Queqiao-2 entered its targeted elliptical orbit on April 2 after a correction midway, near-moon braking and orbital manoeuvre around the moon, CNSA said.

The satellite has successfully communicated with Chang’e 4, which was the first spacecraft to perform a soft landing on the far side of the moon and is still carrying out its exploration mission. It also communicated with the Chang’e-6 probe while it is still on the ground earlier this month.

The successful launch of Queqiao-2 comes after the failed launch of another lunar spacecraft DRO-A/B satellites, which was intended to enter the moon’s distant retrograde orbit (DRO).

China has not released any information on whether or not the satellites can be retrieved.

 

(Reuters)

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Russia aborts planned test launch of new heavy-lift space rocket

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(Last Updated On: April 11, 2024)

Russian space officials on Tuesday aborted the test launch of a new heavy-lift rocket from its far-eastern launch pad.

The Angara-A5 rocket was scheduled to lift off from the Vostochny space launch facility at 0900 GMT Tuesday, but the launch was aborted two minutes before, AP reported.

Yuri Borisov, head of Roscosmos state space corporation, said the automatic safety system canceled the launch after registering a flaw in the oxidizer tank pressurization system.

He said the next launch attempt was set for Wednesday.

Tuesday’s launch was to be the fourth for the Angara-A5, a heavy-lift version of the new Angara family of rockets that has been developed to replace the Soviet-designed Proton rockets.

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