Big blow to China: India may ban cheap Chinese smartphones

India, home to the world's second-largest mobile market may ban Chinese smartphone makers from selling cheap mobiles in India.

Bloomberg reports quoting unnamed sources that India is considering restricting Chinese smartphone makers such as Xiaomi from selling devices cheaper than Rs 12,000. As per data available phones under Rs 12,000 account for over 30% of sales in India, with Chinese companies accounting for up to 80% of the mobiles bought.

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The latest round of restrictions are a follow up on a series on changes made by the Indian govt after the India-China clash in 2020. After banning over 300 Chinese apps including popular TikTok, New Delhi also subjected Chinese firms operating in the country, such as Xiaomi and rivals Oppo and Vivo, to close scrutiny of their finances, which has led to tax demands and money laundering allegations. Chinese firms have also been excluded from the 5G trials as the new policy ensures telcos use only 'trusted sources'.