Chinese electronics companies operating in India, such as Oppo, Vivo, Lenovo-Motorola, Haier, and Midea, are now primarily funding their operations through loans from their parent companies. This change is largely due to the challenges posed by Press Note 3 regulations, which restrict foreign direct investment from neighboring countries like China. As a result, these firms have turned to external commercial borrowings to meet their financial needs. For instance, Lenovo India provided a significant loan to Motorola Mobility India, while Haier Appliances India borrowed from its parent company for business requirements. The regulatory environment has made it difficult for these companies to access local bank loans, leading to a reliance on group funding. Additionally, many Chinese firms have faced investigations related to compliance issues, further complicating their financial situations in India. The dominance of Chinese brands in the Indian smartphone market underscores the importance of resolving these funding challenges.