China responds to raids on Vivo by Indian government agency
Premium- ‘The essence of China-India economic and trade cooperation is for mutual benefit and win-win results,’ Spokesman and Councellor Wang Xiaojian said in a statement
Multiple investigations by Indian enforcement agencies into Chinese companies are damaging the confidence of foreign entities investing and operating in the country, China's embassy in the South Asian nation has said.
Spokesperson of Chinese Embassy in India Counsellor Wang Xiaojian has given the first reaction to the raid by the Directorate of Enforcement of India on Vivo India.
Asked about the ongoing raids on Vivo offices in several locations in India, Chinese Foreign Ministry spokesman Zhao Lijian told a media briefing here that the Chinese side is closely following the developments on this matter.
"On July 5, the Directorate of Enforcement (ED) raided vivo and its dealers at 44 production and operation sites across the country for allegedly violating the provisions of The Prevention of Money Laundering Act (PMLA). We are following the issue closely," it said
"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," the statement further added.
“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 and chills the confidence and willingness of market entities from other countries, including Chinese enterprises to invest and operate in India," according to the Chinese spokesperson.
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. 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.
Wednesday's comments by the embassy follow raids this week by a financial crime fighting agency, the Enforcement Directorate, targeting smartphone maker Vivo, owned by China's BBK Electronics, in a money-laundering investigation.
The Enforcement Directorate (ED) raided at least 44 places across India on Tuesday in a money-laundering investigation against Chinese smartphone manufacturer Vivo and related firms.
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 said they're cooperating with authorities.