China has reacted to the Enforcement Directorate’s raid on the offices of its Vivo Communication Technology Company Limited and demanded “a fair, just and non-discriminatory business environment” for its enterprises in India.
“The frequent investigations by the Indian side into Chinese enterprises not only disrupt the enterprises’ normal business activities and damage the goodwill of the enterprises, but also impedes the improvement of business environment in India,” said Wang Xiaojian, a spokesperson of the embassy of the People’s Republic of China in New Delhi. He added that such frequent investigations lowered the confidence and willingness of the market entities of China and other countries to invest and operate in India.
The ED carried out searches at multiple locations linked to Vivo India on Tuesday as part of a probe into an alleged violation of the Foreign Exchange Managed Act.
"The Chinese government always asks Chinese enterprises to abide by laws and regulations overseas and firmly supports Chinese enterprises in safeguarding their legitimate rights and interests,”said Wang.
The essence of China-India economic and trade cooperation is for mutual benefit and win-win results. The bilateral trade volume between China and India strikes a historical record of over 100 billion USD in 2021, which reflects the huge potential and broad prospect of economic and trade cooperation between our two countries, the Embassy of China in New Delhi stated. “China wishes the Indian side to investigate and enforce the law in compliance with laws and regulations, and effectively provide an fair, just and non-discriminatory business environment for Chinese enterprises to invest and operate in India.”
China on Wednesday said it hopes India would conduct investigations into the Chinese smartphone company Vivo according to law and provide a “fair” and “non-discriminatory” business environment for Chinese firms.China is closely following developments related to the raids on the offices of Vivo in India, Chinese foreign ministry spokesperson, Zhao Lijian, said on Wednesday when asked about the case.
“As I have stressed many times, the Chinese government always asks Chinese companies to abide by laws and regulations when doing business overseas,” Zhao said on Wednesday.
“In the meantime, we firmly support Chinese companies in safeguarding their lawful rights and interests,” he said.“We hope the Indian side will conduct investigations and law enforcement in accordance with laws and regulations and earnestly provide a fair, just and non-discriminatory business environment for Chinese companies investing and operating in India,” Zhao added.India’s Enforcement Directorate (ED) on Tuesday raided at least 44 premises connected to the company across the country in a money-laundering probe against the Chinese company.
The searches were carried out under sections of the Prevention of Money Laundering Act (PMLA) at locations in several states including Delhi, Uttar Pradesh, Meghalaya and Maharashtra.
A Vivo India spokesperson was quoted by the Indian media as saying the company was cooperating with authorities.The raids took place in the backdrop of souring of ties between India and China over military tension along the Line of Actual Control (LAC) in eastern Ladakh, a dragging dispute ongoing since May, 2020.April, the ED seized ₹5,551 crore belonging to the Chinese company Xiaomi from bank accounts for allegedly violating the foreign exchange law.
In 2020, New Delhi cited security concerns in banning over 300 Chinese apps including TikTok - and tightened norms for Chinese companies investing in India.
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