BAn on ChinA phone firms?

INDIA is seeking to restrict Chinese companies from its sub-$150 (£124) phone market in a bid to revive the prospects of domestic players, Bloomberg News reported on Monday (8), citing unidentified sources.

The move would be a blow to Chinese companies such as Xiaomi 1810.HK, according to the report. The plans coincide with rising concerns in India about Chinese brands undercutting local smartphone makers, it added. It is unclear if the Indian government will announce policies or use informal channels to execute the block on Chinese smartphone makers, Bloomberg said, citing people familiar with the matter.

Chinese firms account for a major chunk of entry-level smartphones. Indian firms such as Lava and MicroMax rapidly gained popularity after their launch over a decade ago, but have since lost market share to stiff competition from Chinese players.

Xiaomi and rival Vivo are being investigated by India’s financial crime fighting agency for alleged illegal remittances and money laundering. Both deny any wrongdoing.

The Chinese companies and the Indian government did not immediately respond to requests for comment on the report.