Under scrutiny in India, Chinese smartphone brands tap parents to keep going

Kolkata: Facing multiple regulatory and legal challenges in India, Chinese electronics companies are increasingly relying on their parent entities to sustain local operations, going beyond technology transfer and component supply, according to the latest filings and auditors’ reports submitted to the Registrar of Companies (RoC).

The support ranges from standby letters of credit against bank guarantees and financial support letters to help resolve patent disputes, raising external commercial borrowings (ECBs), extending repayment timelines, and even settling royalties owed to technology partners.