The Chinese embassy says multiple investigations by Indian enforcement agencies against Chinese companies are undermining the confidence of foreign companies to invest and operate in the country.
Multiple investigations by Indian enforcement agencies into Chinese companies are undermining the confidence of foreign companies to invest and operate in the country, the Chinese embassy in the South Asian country said. The Enforcement Directorate, an anti-financial crime agency targeting Vivo, a smartphone maker owned by China’s BBK Electronics, launched an investigation this week into the money laundering, the embassy said in a statement on Wednesday.
Many Chinese companies have struggled to do business in India since political tensions escalated after the border clashes in 2020. India has since raised security concerns by banning more than 300 Chinese apps and tightened rules on Chinese investment.
The embassy said in a statement that such frequent investigations “hinder the improvement of the business environment in India and could attract and manage the confidence and will of market entities in other countries, including Chinese enterprises, to invest in India”.
44 manufacturing and operations sites of Vivo and related companies were raided across India and China is closely following the progress, it added.
Vivo said this week that it is cooperating with the authorities and is committed to full compliance with Indian law.
Indian agencies and government spokesmen did not immediately respond to requests for comment.
In May, Reuters reported that Xiaomi Corp, one of India’s largest smartphone vendors, told the court that its executives faced threats of violence and coercion during the agency’s interrogation of allegations of illegal remittances.
Xiaomi has denied any wrongdoing, and the company denied the allegations at the time.
India’s rigorous scrutiny led to the suspension of plans to invest গ্রে 1 billion in China’s Great Wall Motor and lay off all employees there this month, after New Delhi refused regulatory approval to buy a factory.