Asian Tech Press -- The official sources in the east China city of Hefei denied on Wednesday the rumors that Xiaomi Corp (1810: Hong Kong)'s electric vehicle business may settle in Hefei, saying that there was no contact with Xiaomi.

It was reported on Tuesday that the Anhui Provincial State-owned Assets Supervision and Administration Commission (SASAC) is in contact with Xiaomi and intends to bring Xiaomi's EV business to Hefei, according to multiple independent sources including sources from Anhui High-tech Industrial Investment Co., Ltd, a wholly state-owned firm.

Xiaomi responded, " Everything is subject to the official disclosure information ", and attached the previous disinformation on the recent rumors, which was issued by Wang Hua, general manager of Xiaomi's public relations department.

An automotive industry media report on Wednesday said that by calling the Anhui Provincial SASAC, it was informed that its staff denied "being in contact with Xiaomi", and said, "I don't know about this, I don't know where the news came from".

In addition, the Hefei Investment Promotion Bureau insider said, "I have no contact with Xiaomi". He revealed that in terms of the introduction of new forces to Hefei, "there is an opportunity to talk, but the key depends on the conditions."

It is understood that Hefei City is known as "the most bullish venture capital institutions" for its investment in EV maker Nio. In November 2020, Hefei also issued the "Opinions on the Implementation of Accelerating the Development of New Energy Vehicle Industry", aiming to build an important new energy vehicle industry base in China.

The Opinions show that Hefei is more interested in introducing industries related to the support of new energy vehicles, and full vehicle manufacturing projects are just one of them. And Hefei already has full vehicle projects such as Nio, JAC Motors and JAC Volkswagen.