China responds to Vivo raids by Indian government agency

According to the Chinese Embassy in the South Asian country, multiple investigations by Indian law enforcement agencies into Chinese companies are undermining the confidence of foreign entities investing and operating in the country.

The spokesperson of the Chinese Embassy in India, Counselor Wang Xiaojian, gave the first reaction to India’s Directorate of Enforcement raid on Vivo India.

Asked about the ongoing raids on Vivo’s offices in several locations in India, Chinese Foreign Ministry spokesperson Zhao Lijian told a press briefing here that the Chinese side is closely following the developments. on this subject.

“On July 5, the Enforcement Department (ED) raided vivo and its dealers at 44 production and operating sites across the country for allegedly violating the provisions of the Money Laundering Prevention Act (PMLA). We are following the problem closely”, It said

“The Chinese government always asks Chinese companies to abide by overseas laws and regulations and firmly supports Chinese companies in safeguarding their legitimate rights and interests,” the statement added.

“The Indian side’s frequent investigations of Chinese companies not only disrupt the normal business activities of companies and damage the goodwill of companies, but also hamper the improvement of the business environment in India and dampen confidence and the willingness of market entities from other countries, including Chinese companies to invest and operate in India,” according to the Chinese spokesperson.

The essence of China-India economic and trade cooperation is mutual benefit and win-win results. Bilateral trade volume between China and India reaches an all-time high of more than 100 billion U.S. dollars in 2021, reflecting the huge potential and vast prospects for economic and trade cooperation between our two countries. China wants the Indian side to investigate and enforce according to laws and regulations, and effectively provide a fair, just and non-discriminatory business environment for Chinese companies to invest and operate in India.

Wednesday’s comments from the embassy follow raids this week by a financial crime agency, the Law Enforcement Directorate, targeting smartphone maker Vivo, owned by China’s BBK Electronics, in a money laundering investigation.

The Law Enforcement (ED) Directorate raided at least 44 locations across India on Tuesday as part of a money laundering investigation against Chinese smartphone maker Vivo and companies linked.

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 were cooperating with authorities.

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