Samsung has lost its No. 1 position in China's smartphone market to Xiaomi and is facing a tough fight in India from local rival Micromax. With the Chinese government encouraging the three state-owned companies to cut their costs, market leader China Mobile last week announced it would reduce by $2 billion, or 38%, the amount of money it spends to subsidize pricey smartphones. Samsung is facing pressure from both investors and politicians to share some of its war chest, which by the end of June amounted to $60 billion in cash and short-term investments. To encourage Samsung and other companies to stop hoarding money, the Korean government is promoting a plan to impose a 10% tax on excessive reserves.