Indian police have formally accused Chinese smartphone makers Xiaomi Corp and Vivo Mobile of assisting in the illegal transfer of funds to a news portal that is currently under investigation for allegedly spreading Chinese propaganda. The accusations were made in a police complaint filed on August 17th. Xiaomi India categorically denied the allegations, while Vivo did not respond to immediate requests for comment. Media rights and opposition groups in India argue that the investigation into the news portal and associated allegations constitute an attack on press freedom, a charge dismissed by the Indian government. The police complaint alleges that NewsClick, the news portal under investigation, conspired with a little-known voluntary group to disrupt India’s sovereignty and create disaffection. The complaint further claims that large amounts of funds were received from China by NewsClick and that Chinese companies such as Xiaomi and Vivo incorporated thousands of shell companies in India to illegally infuse foreign funds in furtherance of the alleged conspiracy. The police complaint, however, did not provide details on how the information was obtained, any evidence of the companies’ involvement, or the steps the police are considering. Xiaomi India issued a strong denial, stating that it conducts its business operations in compliance with applicable laws and that the allegation of conspiracy is baseless. Xiaomi and Vivo are among India’s top smartphone brands, but their involvement in this case could have significant implications for their reputation and market share in India. NewsClick, which has denied publishing news or information on behalf of any Chinese entity or authority, has challenged the complaint in the Delhi High Court, calling the allegations baseless and an attempt to muzzle the free press in India. China has previously dismissed allegations of interference in India and urged the Indian government to provide a fair and non-discriminatory environment for Chinese companies. The tensions between India and China have escalated since a border clash in 2020, resulting in the deaths of 20 Indian soldiers and four Chinese troops. While border tensions have eased through diplomatic talks, India insists that complete disengagement and de-escalation are necessary for normalized relations with China.