The US-China ongoing trade war will lead more investment in India, according to Founder of Xiaomi, Chinese mobile phone and electronics giant.
For Chinese firms, it is becoming difficult to invest in the US and this will lead to investment rise in India, said Lei Jun, rate India in the league of Silicon Valley and China, in an interview to ET.
US and China are locked in the trade war after US president Donald Trump last year imposed heavy tariffs on imported steel and aluminium items. This did not go well with China, which in response imposed increased tariffs on US imports.
Jun considers the Indian market as the most important market outside China.
There is outstanding talent in India, and it is a fast-growing market, he added. Though, he believes there is a long way ahead for India. The ‘Make in India’ programme run by the Indian government is yet to emerge as a rival to China.
Over the years, Xiaomi has been aggressive in the Indian market.
In January, Xiaomi had launched a cross border e-commerce application called ShareSave, which allows people outside China to access the products that are available only to Chinese citizens.
India is the first country to avail the facilities of ShareSave after China. It is based on the mantra that customers share the products with their friends and family and save money on the purchase. It allows the customers to take three routes in this share and save model.
In India, Xiaomi has been consistently leading as the largest Android-run-smartphone seller in the country.
According to IDC latest report, Xiaomi captured 28.9% share in the India smartphone market whereas Samsung had 22.4% of market share in 2018. Xiaomi India Managing Director Manu Kumar Jain had earlier claimed that the Chinese smartphone maker is 54% bigger than the second brand.
In March, Xiaomi announced an investment of Rs 3,500 crore into its Indian entity in an effort to bid to strengthen its stranglehold in the Indian market.
It is also planning to launch a slew of products including electric vehicles, water purifiers, refrigerators and washing machines. Xaiomi has invested in several startups including Sharechat, Hungama, Krazybee, and ZestMoney. The Chinese firm is also piloting payments services in India.