Xiaomi Sources More Production in India Amid Regulatory Scrutiny

(Bloomberg) — Xiaomi Corp. is deepening local sourcing in India, where the Chinese smartphone company seeks to regain market share it lost amid heightened regulatory scrutiny and stiff competition.

Xiaomi contracted homegrown Optiemus Electronics Ltd. to make its Bluetooth neckband earphones — the first time an Indian supplier will make an audio product for the Beijing-based tech giant, Muralikrishnan B, president of Xiaomi India, said in an interview.