Beijing criticized New Delhi for launching “frequent investigations” against Chinese companies operating in India after financial authorities attacked Chinese mobile phone maker Vivo on allegations of money laundering ..
India’s executive office, the Treasury’s executive body, said Thursday that it searched 48 Vivo locations and seized 119 bank accounts worth Rs 4.7 billion ($ 60 million). Vivo said it’s working together Indian authorities..
This raid was New Delhi’s latest action against a Chinese-owned company. Authorities blamed Xiaomi, Another device maker that illegally remitted more than $ 700 million abroad in May. Xiaomi has denied cheating.
Wang Xiaojian, a spokesman for the Chinese embassy in India, said officials are closely tracking Vivo’s case.
“Frequent investigations of Chinese companies by the Indian side not only disrupt and damage the company’s normal business activities. [their] “But it also hinders the improvement of India’s business environment,” Wang said late Wednesday.
The executive office has not commented on this case.
Following the 2020 border clash between Indian and Chinese troops in the Himalayas that damaged the bilateral relations of New Delhi’s nuclear-armed neighbors Banned hundreds of apps owned by China, Blame the user data as “stolen and secretly sent”. The government has also announced that it wants to phase out the use of Huawei equipment in the telecommunications sector.
However, Chinese tech companies still dominate about three-quarters of the world’s largest and fastest growing smartphone market in India.
Schulti Pandarai, Associate Fellow of the Manohar Parical Defense Institute, said: It takes time to modify the course. “
According to Counterpoint Research, Vivo, which was launched domestically in 2014 and has more than 600 stores, accounted for 15% of the market and was the fourth largest smartphone seller in the first quarter of this year.
Vivo manufactures all smartphones for sale in India at the Greater Noida plant in Uttar Pradesh. In a 2021 report, Vivo announced that it would begin exporting from India this year, proposing an investment worth Rs 35 billion ($ 443 million) by 2023.
In fiscal year 2020, the latest filing available, Vivo India posted a 45% increase in sales to Rs. 250 billion, while depreciation, interest and pre-tax losses were Rs. 3.5 billion.
China’s statement on the Vivo raid by the executive office was issued hours before Beijing’s Foreign Minister Wang Yi met India’s Subra Maniyamkar in Bali on Thursday.
Jaishankar said he touched on an hour-long discussion. About the situation of the border “Students and Flight” is a reference to Indians who are unable to resume research in China due to the severe blockade of Covid-19.
General Motors said this month that it had canceled the sale of its stagnant Indian factory to the Great Wall of China two years later because it had not received regulatory approval.