China chills confidence in India after Vivo raid

China chills confidence in India after Vivo raid

The Chinese government warned of lowered confidence in conducting business in India after smartphone maker Vivo became the latest to be hit with “frequent investigations” by Indian authorities on Chinese businesses.

In a statement, Chinese embassy counsellor Wang Xiaojian said the Directorate of Enforcement raided smartphone company Vivo and its dealers at 44 production and operation sites across India, for alleged money laundering.

The Chinese government “firmly supports Chinese enterprises in safeguarding their legitimate rights and interests”, said Wang.

The raids and investigations by the Indian government not only disrupt enterprise but also “chills the confidence” of international companies to invest in India, warned Wang.

The counsellor noted the bilateral trade volume between the Asian nations hit a historical record of over US$100 billion in 2021, which showed the “huge potential and broad prospect of economic and trade cooperation between our two countries.”

Vivo is the latest to be investigated, as rival Xiaomi saw US$725.5 million seized from its local bank accounts, for allegedly violating remittance laws.

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