Chinese embassy slams India’s tech firm probes after Vivo, Xiaomi and Huawei investigations, fines

The Chinese embassy said New Delhi’s ‘frequent investigations’ could ‘impede the improvement of the business environment’

Multiple office raids have put at risk Chinese smartphone brands’ success in India, an important growth market, following a rise in international tensions

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A man cleans a screen displaying a phone model of Chinese smartphone maker Vivo inside a shop in Ahmedabad, India, in December 2018. Photo: Reuters

Published: 10:00pm, 8 Jul 2022Updated: 1:55am, 9 Jul 2022

The Chinese embassy in India has spoken out against New Delhi’s “frequent investigations” into Chinese companies and warned about the implications for India’s business environment and investor confidence after the local offices of Chinese smartphone maker Vivo were raided by authorities in an investigation into alleged money laundering.

Indian authorities conducted the raid on dozens of Vivo’s offices earlier this week. The Enforcement Directorate, the country’s financial crime watchdog, said on Thursday that it had seized 119 bank accounts linked with Vivo India containing a combined US$58.7 million. The investigation followed similar moves against Xiaomi, another Chinese smartphone maker, and Chinese telecoms equipment giant Huawei Technologies Co.

The investigations have disrupted normal business activities and will “impede the improvement of the business environment in India” by hurting the “confidence and willingness” of foreign entities seeking to do business in the country, Counsellor Wang Xiaojian, a spokesman for the local Chinese embassy, said in a statement on Wednesday.

The embassy said it is following the issue closely and hopes that India will provide a fair, just and non-discriminatory business environment for Chinese companies operating in the country.

Chinese business operations in India, which may have already overtaken China as the world’s most populous country, have faced growing regulatory scrutiny since a deadly border clash in 2020.

In June that year, two weeks after the conflict, New Delhi targeted Chinese tech firms including Tencent Holdings, Baidu and Alibaba Group Holding, owner of the South China Morning Post. It also banned 59 mobile apps on national security grounds, including TikTok.

The government has since banned more Chinese apps, surpassing 200 to date, hurting tech firms’ ambitions in what is considered the next great growth market.

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