(Bloomberg) -- Xiaomi Corp. has named Alvin Tse as the new head of its India business as the Chinese smartphone company navigates government challenges in its second-biggest market by users.

Tse, who was previously the top Xiaomi executive in Indonesia, will take over as the general manager for the company’s India unit, Xiaomi said, without giving a precise timeline.

Tse’s appointment comes as Xiaomi battles accusations by India’s anti-money-laundering agency that it moved money out of the country by falsely claiming it was for patent-fee payments. The agency seized more than $700 million from the India unit of the Chinese smartphone maker in April, a move that has since been put on hold pending a final court decision.

India’s hardening stance on Xiaomi is part of a wider scrutiny of Chinese companies since a Himalayan border clash between the two nuclear-armed neighbors in 2020.

Manu Kumar Jain, the previous Xiaomi India head credited with the company’s rise to No. 1 in the country’s smartphone market, last year moved on to a global role and is currently responsible for international strategy.

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