China has criticised investigations by Indian authorities into its telecommunications equipment companies after financial-crime officers raided the Indian offices of smartphone maker Vivo weeks after they burst in on Xiaomi’s operations.
India’s Enforcement Directorate (ED), the agency that probes alleged economic wrongdoing, raided more than 40 of Vivo’s offices across India on Tuesday.
The agency was investigating irregularities connected with the company’s ownership, Indian media said.
“The frequent investigations by the Indian side into Chinese enterprises not only disrupt the enterprises’ normal business activities [but also] damage the goodwill of the enterprises,” Wang Xiaojian of China’s embassy in New Delhi said.
The Vivo raids follow an Enforcement Directorate investigation into Xiaomi, another Chinese smartphone maker and one of India’s leading brands, over alleged financial crime such as sending remittances abroad illegally.
Xiaomi alleged in court that its top executives faced threats of “physical violence” and coercion during questioning by officials at the Enforcement Directorate. The agency denied the allegations.
Many Chinese companies have struggled to do business in India due to political tensions following a border clash in mid-2020.
India has cited security concerns in banning more than 300 Chinese apps, and also tightened rules for Chinese companies investing in India.
- George Russell, with Reuters
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