China says ED raids at Vivo, other firms ‘chill investment confidence’

The Chinese Embassy in India on July 6 issued a statement, saying the “frequent investigations” by the Indian side into Chinese enterprises disrupt the enterprises’ normal business activities and damage the goodwill of the enterprises”.

ED raided at least 44 places across India on June 5 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.

The raids also impede the improvement of the 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”.

“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.

The action is being seen as part of the Union government’s steps to tighten checks on Chinese entities and the continued crackdown on such firms and their linked Indian operatives that are allegedly indulging in serious financial crimes like money laundering and tax evasion while operating in India.

The stepped-up action against the Chinese-backed companies or entities operating in India comes in the backdrop of the military stand-off between the two countries along the Line of Actual Control (LAC) in eastern Ladakh has been ongoing for more than two years now. Moneycontrol