China on Wednesday expressed the hope that India will conduct the ongoing investigations into Chinese mobile phone maker Vivo in accordance with law and regulations and provide a “fair” and “non-discriminatory” business environment for Chinese companies.
In response to a question about the ongoing raids on Vivo’s offices in several locations in India, Chinese Foreign Ministry spokesman Zhao Lijian said at a media briefing here that the Chinese side is closely following the developments in this regard.
“As I have emphasized many times, the Chinese government always requires Chinese companies to abide by laws and regulations when doing business abroad,” he said.
“In the meantime, we firmly support Chinese companies in protecting their legitimate 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, fair and non-discriminatory business environment for Chinese companies investing and operating in India,” the spokesperson said.
The Department of Enforcement (ED) raided at least 44 places across India on Tuesday in a money laundering investigation against Chinese smartphone maker Vivo and related companies.
The searches were conducted 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 said they are cooperating with the authorities.
The action is seen as part of the Federation government’s steps to tighten controls on Chinese entities and the ongoing crackdown on such companies and their associated Indian clients who are allegedly indulging in serious financial crimes such as money laundering and tax evasion while operating in India.
The escalating actions against Chinese-backed companies or entities operating in India come against the backdrop of the more than two-year military confrontation between the two countries along the Line of Actual Control (LAC) in East Ladakh. Currently.