Indian media reported on July 5 that the Indian Enforcement Directorate had raided the offices of Chinese cell phone brand vivo and related companies in the country, on suspicion of money laundering, with locations in Delhi, Uttar Pradesh, Meghalaya, Maharashtra and other states.
On the morning of July 6, a vivo spokesman told Chinese media that the firm was cooperating with the Indian authorities and providing them with all the information they need. “As a responsible company, vivo strictly complies with all local laws and regulations in India,” the firm stated.
On the same evening, the website of the Chinese Embassy in India showed that its spokesman, Counsellor Wang Xiaojian, said that China was closely following the matter when answering reporters’ questions on vivo India’s anti-money laundering investigation by the Indian Enforcement Directorate. The Chinese government has always required Chinese enterprises to operate legally and in compliance overseas, and also firmly supports Chinese enterprises in safeguarding their legitimate rights and interests.
Wang asserted that frequent investigation of Chinese enterprises by the Indian authorities not only disrupts the normal business activities of enterprises and damages their reputation, but also discourages the improvement of the business environment in India and undermines the confidence and willingness of market players, including Chinese enterprises, to invest and operate in India.
The nature of China-India economic and trade relations is mutually beneficial and win-win. India-China bilateral trade volume historically exceeded $100 billion in 2021, fully reflecting the huge potential and broad prospects of economic and trade cooperation between the two countries. China hopes that the Indian side will comply with the law to investigate and enforce the law, effectively providing a fair, just and non-discriminatory business environment for Chinese enterprises to invest and operate in India.
Since the beginning of this year, many manufacturers, including Huawei and Xiaomi, have been investigated by the Indian government. Vivo is the third Chinese smartphone manufacturer to be raided this year.
Vivo entered the Indian market in 2014. By 2021, the firm had opened more than 650 service centers in India and opened exclusive stores in more than 500 regions. According to public information, the production capacity of vivo factories in India has reached 60 million units per year.