China says India risks scaring away investors with raids on its companies
China’s embassy in India said in a statement Thursday that probes by Indian authorities into Chinese companies were disrupting “normal business activities” and chilling “the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India.”
The criticism comes after India’s Enforcement Directorate — the country’s main financial investigation agency — raided major Chinese smartphone company Vivo over allegations of money-laundering earlier this week.
In the statement, the Enforcement Directorate has accused Vivo of tax fraud and said the firm remitted 624.8 billion rupees ($7.9 billion), mostly to China.
“These remittances were made in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India,” it said.
“The employees of Vivo India, including some Chinese Nationals, did not cooperate with the search proceedings and had tried to abscond,” the agency added.
A Vivo spokesperson in India said Tuesday that the company “is cooperating with the authorities to provide them with all required information.”
Xiaomi also targeted
Xiaomi India said at the time that “all our operations are firmly compliant with local laws and regulations.”
Chinese phone makers dominate the Indian market, with Xiaomi being the top-selling brand, according to data compiled by Counterpoint. Vivo is also among the top five brands, the firm said.
