ED raids on Vivo: Frequent probes hurt business confidence, says China
ED raids on Vivo: China’s Embassy in India said that multiple investigations by the country’s enforcement agencies into Chinese companies are damaging the confidence of foreign firms investing and operating in the South Asian nation.
- ED conducted Raids at 44 production and operation sites of Vivo and related entities across India.
- China was closely following progress of raids, the embassy said.
New Delhi: China’s Embassy in India, on Wednesday (July 6), said that multiple investigations by the country’s enforcement agencies into Chinese companies are damaging the confidence of foreign firms investing and operating in the South Asian nation. The comments by the embassy follow Enforcement Directorate (ED) raids targeting China’s BBK Electronics-owned smartphone maker Vivo in an alleged money laundering case.
In the latest incident, ED conducted Raids at 44 production and operation sites of Vivo and related entities across India, and China was closely following progress. (ALSO READ:
However, Vivo isn’t the only Chinese firm that has faced scrutiny from Indian authorities, as in the aftermath of the Galwan Valley clashes, several tech companies were directed to stop offering their apps in India. (ALSO READ: Twitter user asks Anand Mahindra 'Are you an NRI?' His response wins Internet)
Citing security concerns, the government has banned more than 300 apps with Chinese lines. Moreover, the government has also tweaked rules to make it tougher for Chinese investments to make their way to India. (ALSO READ: The BEST boss ever? THIS company took all employees on 10-day exotic vacation to Bali --Watch Instagram video)
Such frequent investigation "impedes the improvement of the business environment in India and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India," the embassy said in a statement.
Following the raids, Vivo said it was cooperating with authorities and was committed to full compliance with Indian laws.
In May, Reuters reported that Xiaomi Corp, one of India’s biggest smartphone sellers, had said in court that its executives faced threats of violence and coercion during agency questioning about accusations of illegal remittances. Xiaomi, however, denied wrongdoing, and the agency denied the accusations at the time, according to a report by Reuters.
-- With Reuters inputs.