Vivo raids: China says India risks scaring away investors

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The Indian Embassy of China in India stated A statement was made Thursday Indian authorities conducted probes into Chinese companies, disrupting “normal business activity” and chilling the “confidence and willingness of market entities in other countries, including Chinese enterprises, to invest or operate in India.”

The criticism comes after India’s Enforcement Directorate — the country’s main financial investigation agency — raided major Chinese smartphone company Vivo over allegations of money-laundering earlier this week.

You can find out more at Press releaseThe Indian agency stated that it had received notification on Thursday We conducted searches at 48 Vivo locations across the country. seized 4.65 billion rupees($60 Million) from 119 bank cards, including cash and gold bars, plus fixed deposits.

In the following statement: The Enforcement Directorate accused Vivo in tax fraud. They claimed that Vivo remitted 624.8 million rupees ($7.9billion), mostly to China.

It said that these remittances were made to conceal huge losses in Indian incorporated businesses and to avoid paying Indian taxes.

“The agency said that Vivo India employees, which included some Chinese Nationals had not cooperated with the search proceedings and had attempted to abscond.”

A Vivo spokesperson in India Tuesday’s statement stated that the company was cooperating with authorities in order to provide all information.

Xiaomi also targets

The raids on Vivo offices come two months after India seized more than $700 million from another big Chinese smartphone maker — Xiaomi. It was also AccusedIt is illegal to move money out of the country.

Xiaomi India stated at the time that all its operations were in compliance with local laws and regulations.

According to Counterpoint data, the Indian market is dominated by Chinese phone manufacturers. Xiaomi is the most popular brand in India, and the largest-selling. The firm also stated that Vivo is among the top five most popular brands.

Since the escalating tensions between two of the most populous nations in the world, India has been adamant about Chinese companies. 2020, India banned more than 200 apps — many of which were Chinese, including the wildly popular video platform TikTok.



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