Indian authorities, which have imposed sanctions on Chinese companies that dominate the local market, have launched a massive tax investigation into Chinese solar companies this time.
According to a report by Chinese media, including Jeil Jae-kyung, on the 27th, Indian tax authorities are investigating more than 40 solar companies in China for tax evasion, and Indian retailers are also included in the list. The companies concerned were concerned that huge fines or fines could be imposed depending on the results of the investigation by Indian authorities.
“The investigation has continued for a month,” a Chinese solar energy company said, “The results have not yet been released, and the business is progressing normally.” Analysts say that Chinese companies, which are facing pressure to cut prices due to the sluggish solar industry in China, could be judged to be dumping as they are selling at low prices abroad.
Some analysts say that the Indian authorities have begun to check Chinese companies that are encroaching on India’s solar industry to protect their own companies. According to China’s Tianfeng Securities, China’s solar cell module exports to India in September amounted to 2.325 billion yuan (about 430 billion won), a 1,756% jump from the same month last year.
India is the world’s third largest solar facility market and is the only country other than China and the United States to form a 10 gigawatt (GW) solar market. However, due to the low level of related technology, the import dependence of facilities is high, and Chinese companies are almost monopolizing it.
According to data from Indian authorities, 92% of the $3 billion (about 4.65 trillion won) solar panels imported from 2021 to 2022 were from China. Earlier, the Indian tax authorities imposed massive regulations on Chinese mobile phone companies last year.
Xiaomi’s Indian subsidiary was fined 6.53 billion rupees (about 16 billion won) for tax evasion, and 55.5 billion rupees were seized for illegal overseas remittance. Vivo and Oppo were also fined 4.6 billion rupees and 43.9 billion rupees, respectively, on charges of tax evasion.
Chinese mobile phone companies have entered India since 2014 and dominated the low-cost smartphone market. Last year’s market share survey found that two out of three Indian mobile phone users use Chinese-made mobile phones, of which Xiaomi’s share reached 25%.
SOPHIA KIM
US ASIA JOURNAL
