Worried over allegations levelled
against it over data security, Chinese smartphone maker Xiaomi Inc said it
plans to set up a data centre in India next year to store local user data.
Xiaomi last week said it was migrating
some data on non-Chinese customers away from its servers in Beijing due to
performance and privacy considerations and the process would be completed by
the end of the year.
The
Chinese company also said that it was attempting to contact Indian authorities
for more details on local media reports, adding that it did not collect user
data without permission.
Xiaomi, whose low-priced but
feature-rich smartphones have made it the biggest smartphone vendor in China,
entered India this year with plans to invest heavily to secure rapid growth in
the world's third-largest smartphone market.
It sells its phones in India via
Flipkart.com, the country's biggest online retailer, and said last month it
planned to sell 100,000 phones a week in the country in October.
Xiaomi has faced several privacy
controversies, including accusations from international security researchers
and a government agency in Taiwan that it funnels unauthorised user data back
to its servers in Beijing. Indian media reported last week that the country's
air force had issued alerts to its personnel and their families against using
Xiaomi phones on security concerns.
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